Knowledge Economy And Economic Performance: Comparison Of Turkey And The European Union

Abstract

Economic growth is defined as the long-term expansion of an economy's production capacity. As a result of economic growth, significant changes can occur in the economic, social and cultural structures of a country. In this context, the development process of growth has attracted the attention of economists, researchers, policy makers and even households historically. In the economics literature, this concept was first associated with the agricultural revolution and afterwards with industrial revolution. In the last quarter of the 20th century, the foundations of a third revolution under the leadership of knowledge and technology are laid. Economies which use labor, capital as well as knowledge are one step ahead in the name of growth. The aim of this study is to examine the relationship between the economic performance and knowledge economy which has knowledge, technology and innovation are in significant place and in this context, it is to make comparisons between EU countries and Turkey. In this study, the impact of the knowledge economy on economic performance has been examined by the selected economics components of 7 main topics in the World Bank KAM methodology Custom Scorecards. By using data of 1998-2017 period of 28 EU members and Turkey that has been postulated to be a member in the unity for a long time, a panel data analysis was performed. According to the results of the analysis, the variables of capital, labor, export, R&D expenditures, education expenditures and public activity which are the components of the knowledge economy used in the study, have a positive effect on economic performance. Additionally, it was determined that other knowledge economy components except female in labor force and mobile phone subscription variables were more effective and efficient in EU countries in terms of economic performance.