The Link Between R&D and Financing Constraints in Manufacturing Sectors for Two Emerging Markets

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dc.authoridDoruk, Omer Tugsal/0000-0002-2382-1042
dc.contributor.authorDoruk, Omer Tugsal
dc.date.accessioned2025-01-06T17:44:07Z
dc.date.available2025-01-06T17:44:07Z
dc.date.issued2023
dc.description.abstractThis study examines the impact of financing constraints and R&D investment in two technology-intensive emerging economies: Brazil and Turkey. It is pointed out that both countries suffer from capital market inadequacies. Therefore, the impact of financing constraints on R&D spending is investigated using advanced econometric models. This study covers the period 1997-2019 for manufacturing firms in two emerging economies. A fractional probit model with a novel control function approach that accounts for heteroskedasticity, endogeneity, simultaneity and omitted variable bias was used in the present study. The results show a significant relationship between R&D expenditure and financing constraints for Brazil and Turkey. Moreover, the results suggest that internal financing encourages R&D spending that requires high initial fixed costs and has a high probability of failure for firms under financial constraints in these two emerging economies. Internal financing is a significant option for R&D spending for financially constrained firms in Turkey, while it is significant for financially unconstrained Brazilian firms in terms of internal financing. However, financial leverage has a negative effect on R&D spending for all firms in both countries. The results do not change when the different robustness tests are applied.
dc.identifier.doi10.1007/s13132-023-01563-8
dc.identifier.issn1868-7865
dc.identifier.issn1868-7873
dc.identifier.scopus2-s2.0-85176442747
dc.identifier.scopusqualityQ1
dc.identifier.urihttps://doi.org/10.1007/s13132-023-01563-8
dc.identifier.urihttps://hdl.handle.net/20.500.14669/2937
dc.identifier.wosWOS:001103719300003
dc.identifier.wosqualityQ1
dc.indekslendigikaynakWeb of Science
dc.indekslendigikaynakScopus
dc.language.isoen
dc.publisherSpringer
dc.relation.ispartofJournal of The Knowledge Economy
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanı
dc.rightsinfo:eu-repo/semantics/closedAccess
dc.snmzKA_20241211
dc.subjectR&D expenditures
dc.subjectFinancing constraints
dc.subjectFractional probit model
dc.subjectEmerging markets
dc.subjectTurkey
dc.subjectBrazil
dc.subjectControl function approach
dc.titleThe Link Between R&D and Financing Constraints in Manufacturing Sectors for Two Emerging Markets
dc.typeArticle

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