(The Effect of Interest in Industry 4.0 Tools Used in Production on Exports of High Technology Products)

Abstract

Purpose – Determining the effect of the level of interest in Industry 4.0 on the export and import of high technology products has been determined as the main purpose of the study. Design / Method / Approach – In the study, the factors, such as human capital, foreign direct investments, gross domestic savings, gross capital formation, infrastructure, exchange rates, inflation, immigration, technology, R&D, internet usage, patent, and the level of interest in Industry 4.0, affecting the import and export of high technology products are determined by panel data analysis using the data set of 31 countries between 2007-2019. Findings – According to the results of the panel data analysis, domestic savings, which are important in increasing economic growth and capital accumulation, positively affect both import and export of countries. In terms of selected countries, as the number of patents in a certain period increases, the import of high technology products increases, and its exports decrease. In addition, it was concluded that the human capital variable determined based on education level, the technology variable determined as the medium and high technology industry value added rate, and the level of interest in Industry 4.0 tools increased the imports of high technology products and had no effect on exports. In the model where all variables are included, it is concluded that the R&D expenditures made by countries within a year increase high technology exports and have no effect on imports. Discussion – For countries to increase their high technology exports in terms of foreign trade, the increasing interest in Industry 4.0 tools should be transformed into a part of R&D activities together with human and physical capital investments. According to the findings, as R&D expenditures increase, high technology exports also increase. Thus, the level of interest in Industry 4.0 tools, which can be a threat to the national economies, can be transformed into an opportunity.