Beyond the Structural Change: Does Technology Obsolescence Effect Exist in the Economy of Turkey?




Public R&D expenditure, EKC, Turkey, Population growth, GDP, ARDL, Decision making


The implications of economic activities on the quality of environment have gained a long theoretical and empirical debate among scholars and decision-makers, using perhaps the most sophisticated analytical techniques, however, no consensus is yet to be reached on a specific pattern of the relations. Deviating from the attendant literature, this study conducts a comprehensive empirical investigation for the relationship between economic growth and environmental quality for Turkey using a cubic polynomial function under the framework of extended form of EKC hypothesis. The study employed Autoregressive Distributed Lag model for the annual data extending the period 1996-2022. The findings reveal that the relationship between economic growth (GDP) and environmental quality is inverted N-shaped. Additionally, the results uncover that public expenditure on research and development (R&D) has no reliable power to explain the variation in environmental quality, while the population growth rate contributes to reducing pollution. Among numerous policy suggestions, the study recommends that an expansion in green investment can increase the effectiveness of sustainability policies, and financial sector can play a promising role through regulated expansion of domestic credit and bank credit to the private sector to promote the development and diffusion of environmentally sound technologies.


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How to Cite

Önden, A., & Mohammed, A. (2023). Beyond the Structural Change: Does Technology Obsolescence Effect Exist in the Economy of Turkey?. Journal of Soft Computing and Decision Analytics, 1(1), 317-333.