Test of Endogenous Growth Theory via Technological Spillover Effects of International Capital Good Flows

This paper aims to test endogenous growth models based on technology spillovers. So far similar models have tested the effects of total physical capital formation and international capital goods flows on long-run economic growth. We exploited VAR models and explored that imported machinery and equipment has no long-run growth effects. However, in the short-run, growth effects appeared in most of the impulse responses. Since the impulse response values of some countries go apart from the steady-state growth rate in the longrun, we hypothesized that like economies absorption, diffusion and physical capital-human capital complementarity, market imperfections facts must be incorporated in the models to understand the long-run economic growth.