KEY ROLE OF R and D INTENSITY ON POLITICAL AND FINANCIAL STABILITY: EVIDENCE FROM THE G-8 COUNTRIES
The concept of globalization has increased the importance of the expenditures on R and D, which are well known as the fundamental source for economic growth of both developing and developed countries. Even though, there have been a great number of studies subjected to the R and D-economic growth rel...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Social Sciences Research Society
2018-07-01
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| Series: | International Journal of Economics and Finance Studies |
| Online Access: | http://www.sobiad.org/eJOURNALS/journal_IJEF/archieves/IJEF_2018_2/y-yildirim.pdf |
| Summary: | The concept of globalization has increased the importance of the expenditures on R and D, which are well known as the fundamental source for economic growth of both developing and developed countries. Even though, there have been a great number of studies subjected to the R and D-economic growth relationship, there have rarely been studied on the subject of the relationship among R and D, political stability and financial stability. In this regard, the main scope of this study is to investigate the causal relationships between R and D intensity and political stability and financial stability for G-8 countries during the period 1996-2013. Applying the Dumitrescu-Hurlin panel non-causality test, the empirical findings of this study shows that there exists a causal relationship running from R and D intensity to political stability and financial stability. Moreover, this study shows that R and D intensity has a positive and statistically significant effect on both political and financial stability of the G-8 countries. |
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| ISSN: | 1309-8055 1309-8055 |