Analysis of the Relationship between R&D and Pharmaceutical Foreign Trade: A Macro and Micro Data Analysis

The study examines the impact of pharmaceutical R&D expenditures on pharmaceutical foreign trade by utilizing macro and microdata. The macro data is sourced from open-access databases provided by OECD and TURKSTAT, while the microdata analysis was conducted at the TURKSTAT data research center. The macro-level data analysis involves a cointegration test followed by estimating long-term coefficients. The results indicate that pharmaceutical R&D expenditures positively affect pharmaceutical exports in the long run, while they negatively affect pharmaceutical imports. In addition, pharmaceutical R&D expenditures positively affect total exports but not total imports. The micro-level data analysis involves POLS, fixed and random effect panel models. The findings reveal that pharmaceutical firm’s R&D expenditure is positively correlated with exports and negatively correlated with imports. The macro and micro data findings align with our expectations, reinforcing each other intensely.