The Causality Relationship Between R&D Expenditure, Efficiency Levels and Total Factor Productivity of Firms (A Review on Firms Operating in BIST)

Abstract

Company efficiency is important for determining the level of competitiveness of firms in national and international markets with the effect of globalization and increasing competition conditions in international markets. Firm efficiency is expressed as the firm achieving an optimal combination of data inputs and output. R&D expenditures play an important role in increasing the efficiency performances of the companies. The R&D expenditures of the enterprises increase the firm size, profitability and competitiveness. In this study, Borsa İstanbul in Turkey between the years of 2009-2018 operating in continuous R&D spending and manufacturing company engaged in the R&D expenditure, which examined the relationship between firm efficiency and total factor productivity. Two-stage prediction method was used to test this relationship. Data Envelopment Analysis method was used as an auxiliary method to determine efficacy and TFP levels.