Determinants of export by technology intensity: Panel data analysis on G-7 and E-7 countries

The increasing globalization trend in the world leads to an intensification of competition among countries. In this context, it becomes necessary for countries to take certain measures and implement policies aimed at these measures in order to compete at the international level. First of all, it is very significant for a country's economic performance to be sustainable in order to compete with other countries. One of the most crucial in ensuring sustainable economic performance is technology-intensive exports. It is clear that identifying the determinants of technology-intensive product exports is critical for the international competitiveness of countries. In this context, this thesis aims to determine the determinants of technology-intensive product exports in the E-7 countries which are seven developing economies, and the G-7 countries which are seven developed economies, and the relationship between these determinants. In the study, panel regression method was used to determine the determinants of technology-intensive product exports and panel causality analysis was used to determine the relationships between the relevant determinants. According to the findings of the study, while the exchange rate has a significant effect on low-technology goods in both country groups, the direction of the effect is negative. While the effect of patent applications and R&D expenditures on medium-technology goods exports is positive in both country groups, it can be said that this effect is higher in G-7 countries. The effect of the first degree schooling rate on medium technology goods exports is insignificant in E-7 countries, but significant and positive in G-7 countries. While the effect of patent applications and R&D expenditures on high-technology goods exports is positive in both groups, the contribution of this effect to exports is higher in E-7 countries. Within the framework of the findings obtained from the study, it has been revealed that the E-7 countries continue to have the potential to catch up with the G-7 countries economically. However, in order for this potential to be realized in practice, policies to increase the quality of education and support R&D investments need to be put into effect in the E-7 countries. In addition, it is substantial to attract foreign investments that will contribute to high-technology production and to implement incentives and subsidies that will support the transformation of the production structure to high-technology production.