The Investigation Of Relation Between Technology And Economic Growth In EU-28 Countries Using By Technology-Capital (AK) Model

Abstract

This study aims to investigate relation between technology and economic growth for EU-28 countries. The period of analysis covers from 1990 to 2014. It was used economic growth, gross capital formation, interner users and scientific and technical article variables to estimate AK endogeneous growth model. In our study, panel unitroot, panel cointegration, panel Granger causality and vector error correction model was applied. The results of panel Granger causality represent that the impact of gross capital formation and internet users on economic growth is positive and statistically significant in short-term and there is no Granger causality between variables in long-term. Cyprus, Denmark, Lithuania and Poland have Granger causality from scientific and technical journal article and internet usage to economic growth in short and long term. Sweden has Granger causality from scientific and technical journal article and internet usage to economic growth in only long term. Increasing internet usage policies implemented in EU-28 countries should promote economic growth.