What Is the Level of Savings Needed for High-Technology Export Led Growth?
Articles
Ebru Gül Yılmaz
İstanbul Gelişim University, Turkey
https://orcid.org/0000-0002-3610-4982
Published 2024-04-11
https://doi.org/10.15388/Ekon.2024.103.1.8
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Keywords

High-technology export-led growth
saving level
Dimutrescue and Hurlin Casualty
Threshold Regression
Economic Development

How to Cite

Yılmaz, E.G. (2024) “What Is the Level of Savings Needed for High-Technology Export Led Growth?”, Ekonomika, 103(1), pp. 127–144. doi:10.15388/Ekon.2024.103.1.8.

Abstract

High-tech export-led growth is an important determinant in terms of having a milestone feature for the level of development of countries. Although the restrictions arise from recent literature, it is obvious that countries, like Korea with 35.7% the high-technology product export ratio and China with 31.3%, that have set a strategy on the high-technology export-led growth could have managed to achieve what they aimed to have. It is obvious that to make any investment in high-technology products, a certain level of savings should be achieved. The purpose of this paper is to determine the savings level that is necessary for achieving a high-technology export level for economic growth. The motivation arises from the willingness to shed light on policymakers on their way to achieve the high-technology export-led growth. Sixteen countries with high-technology product export levels higher than the World’s average are chosen in order to test the HXT export-led growth strategy at the initial stage. The period of 2007–2020 has been chosen due to the availability of the data. After achieving the result that there is a bidirectional casualty relationship between HTX and economic growth, by using the threshold regression model it is concluded that after achieving the savings level of 38.73%, countries can create an increase in their HTX level. And this is a very important output for policymakers for setting their strategies for the high-technology export-led growth. Hence the main aim of the policymakers is to increase welfare level of citizens, they should aim to reach 38.73% in order to achieve the high-technology export-led growth. After reaching this savings level they will have a chance to make investments for producing high-technology products by routing their savings to research and development and getting patents. In this way, they will have a chance to increase the welfare levels with the HTX-led growth strategy.

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