INVESTIGATING THE RELATION BETWEEN TECHNOLOGY AND ECONOMIC GROWTH WITH AK MODEL: AN APPLICATION SWAMY'S RANDOM COEFFICIENT MODEL (RCM)

Abstract

This study aims to investigate effect of technology on economic growth and 2008 crises on this relation in thirthty-OECD countries using static panel data model and random coefficient model (RCM) with AK model. We applied cross-sectional dependence test, panel unit-root test and cointegration test. As a result of static panel regression model with different OECD sub-sample for both pre and post-2008 period, there is negative significant effect of Business Enterprise Expenditure on R&D (BERD) on economic growth in OECD countries which has high R&D expenditure to GDP EU countries for the post-2008. As a result of RCM, in Denmark, France, and Germany, it was observed decreasing technology effect on economic growth after 2008 crisis.