The Causal Relationship Between Economic Growth, R&D Expenditures, and Technological Innovation in Türkiye
Chapter from the book: Uçar, M. (ed.) 2026. Growth in the Global Economy: A Macroeconomic Framework.

Mücahit Ülger
Kırşehir Ahi Evran University

Synopsis

This study aims to examine the causal relationships between labor, capital, technological innovation, R&D expenditures, and economic growth in the Türkiye economy. Due to data limitations, the analysis was conducted using annual data from 1996–2021. The Toda–Yamamoto causality approach, which allows working with series of varying degrees of stationarity, was chosen to determine the causal relationships between the variables. The findings reveal the existence of unidirectional causal relationships from economic growth to labor and technology. Furthermore, a unidirectional causality was detected from R&D expenditures to economic growth, while a bidirectional causal relationship was identified between economic growth and capital. These results demonstrate that capital accumulation and R&D activities play a critical role in the sustainable growth process of the Türkiye economy, and that growth dynamics have a decisive impact on employment and technological innovation.

How to cite this book

Ülger, M. (2026). The Causal Relationship Between Economic Growth, R&D Expenditures, and Technological Innovation in Türkiye. In: Uçar, M. (ed.), Growth in the Global Economy: A Macroeconomic Framework. Özgür Publications. DOI: https://doi.org/10.58830/ozgur.pub1311.c5284

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Published

June 11, 2026

DOI