INVESTIGATION OF THE IMPACT OF FOREIGN DIRECT INVESTMENT ON RESEARCH AND DEVELOPMENT SPENDING IN THE EU COUNTRIES

Authors : İbrahim Özaytürk

Pages : 610-624

Doi:10.17130/ijmeb.1571133

View : 76 | Download : 36

Publication Date : 2025-06-30

Article Type : Research Paper

Abstract :Foreign direct investment (FDI) is a crucial component, particularly for research and development (R&D) initiatives. In countries receiving foreign direct investment, there have been improvements in capital accumulation, a skilled workforce, and research and development activities. Consequently, nations are endeavoring to attract global finance. Currently, scholars are interested in the economic factors associated with FDI are currently a topic of interest for scholars. This study aims to examine the correlation between FDI and R&D in the top ten European Union (EU) member states (Austria, Belgium, Czechia, Denmark, Finland, France, Germany, the Netherlands, Slovenia, and Sweden) that dedicate the greatest proportion of resources to R&D. The study initially assessed the series\\\' stationarity using the CIPS and CADF unit root tests, utilizing data sets from 1996 to 2021. The autoregressive distributed lag (ARDL) approach was employed in accordance with the obtained results. The study\\\'s results were analyzed individually for each country, concluding that FDI did not positively contribute to the R&D activities of all countries, and its impact on certain nations was not as anticipated. The nations\\\' technological advancement clearly links to this predicament.
Keywords : Uluslararası İktisat, Doğrudan Yabancı Yatırım, Araştırma ve Geliştirme, Avrupa Birliği

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