It is a generally accepted idea that in the digital age emerging markets of the global economy should realize a transition to an economic development model based on technological development and innovation in order to close the gap between their economies and advanced economies. One of the main contributions of this paper to the empirical growth literature is that it analyzes the empirical reationship between technological development and economic growth by focusing on ‘emerging economies’ and by employing the recent data of the variables. Another major novelty of this article is that it compares the empirical results of the emerging economies to those of developed countries. In this paper, the relationship between economic growth and technological progress is examined by using the production and innovation models in Romer (1990), one of the R&D-based endogenous growth models. In the analysis, the panel system-GMM estimator, one of the dynamic panel data analysis methods, was applied using the data of 44 countries in the emerging markets and developed economies for the period of 2000-2020. The results of the macro level production function estimations indicate that innovation, human capital and trade openness variables have a positive and statistically significant impact on economic growth in emerging economies. According to the innovation function estimation results, the one-period lagged value of the patent applications, the R&D stock and human capital affect innovation positively and statistically significantly in the emerging eonomies. The results of the analysis largely support the theoretical framework presented in Romer (1990); according to the findings, technological innovation develops endogenously in emerging economies.
Key words: Technological Progress, Economic Growth, Emerging Economies, R&D driven Growth, Panel System-GMM Analysis. JEL Codes: O30, C33, C50. Article Language: EnglishTurkish
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