International Conference on Eurasian Economies
10-12 July 2017 – Istanbul, TURKEY
Paper detail
Paper ID : 1942
Status : Paper published
Language : Turkish
Topic : Finance and Financial Crises
Presenter: Assoc. Prof. Dr. Erhan İşcan
Session : 3D Mikroekonomi I
The Nexus between Financial Development and Innovation: Case of OECD
Finansal Büyüme ve İnovasyon İlişkisi: OECD
- Prof. Dr. Harun Bal (Çukurova University, Türkiye)
- Assoc. Prof. Dr. Erhan İşcan (Çukurova University, Türkiye)
- Dr. Duygu Serin Oktay (Çukurova University, Türkiye)
- Ph.D. candidate Duygu Kara (Çukurova University, Türkiye)
Abstract
Finance-growth nexus is a very known topic in the finance literature and most of the studies confirmed the finance-led growth hypothesis for all developed and developing countries. On the other hand, numerous studies investigated the impact of innovation on economic growth and found a substantial effect of the innovation. Especially for the last two decades almost every study agreed on the positive impact of financial development and innovation on growth. Besides various innovation-based growth models indicated that financial development is one of the main promoter of innovation-based economy. Financial development affects the efficiency of the market or the firm and this increases the innovation capacity. Despite this, only few studies focused on the relation of financial development and innovation. The main purpose of this study is to analyze the relationship between the financial development and innovation for selected OECD countries. Especially this study highlighted the changing role of the financial markets to promote the innovative activity of OECD countries. For this purpose, ARDL model employed to analyze the nexus between the financial development and innovation. The empirical findings of this study provided more knowledge to implement more effective policies to policymakers.
JEL codes: G10, O30, C33
Bal, Harun, İşcan, Erhan, Serin Oktay, Duygu, Kara, Duygu (2017). "The Nexus between Financial Development and Innovation: Case of OECD" in Proceedings of International Conference of Eurasian Economies 2017, pp.546-549, Istanbul, TURKEY.
DOI: https://doi.org/10.36880/C08.01942
