scholarly journals Entrepreneurial Behavior, Institutional Trust and National Innovation: A Macro-Level Empirical Study

2020 ◽  
Vol 4 (1) ◽  
pp. 97-122
Author(s):  
Alvina Sabah Idrees ◽  
Saima Sarwar
Keyword(s):  
Property Rights ◽  
Empirical Analysis ◽  
Institutional Environment ◽  
Early Stage ◽  
Generalized Method Of Moments ◽  
Innovation Process ◽  
Macro Level ◽  
Institutional Trust ◽  
Entrepreneurial Behavior ◽  
The Impact

Schumpeterian fundamentalism supports the argument that innovation is a dynamic process and novelties are initiated through economic agents namely the entrepreneurs; vis-à-vis a strong institutional environment is required to facilitate the innovation process. Therefore, the present study undertakes the macro-level empirical analysis on determining the impact of entrepreneurial behavior, property rights and state effectiveness on country’s innovation. The data is of panel nature consisting of 55 countries and a time period from 2010 to 2016. The empirical analysis is done using system GMM (Generalized Method of Moments) estimation technique. The study shows that the fear of failure rate and total early stage entrepreneurs reduces innovation in a country whereas there is a significant positive relationship between established business entrepreneurs and innovation. However, perceived opportunities have an insignificant impact. This means that it is not inevitable that opportunities necessary trigger innovation. In addition, the study shows that property rights play an integral role in developing institutional trust which boosts entrepreneurialism to undertake innovative venture. On the other hand, state effectiveness is negatively related to innovation i.e. institutional trust is brought down in fragile countries which retard country’s innovation.

scholarly journals An Attempt to Assess the Quantitative Impact of Institutions on Economic Growth and Economic Development

2014 ◽  
Vol 38 (1) ◽  
pp. 7-30
Author(s):  
Mariusz Próchniak
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Empirical Analysis ◽  
Economic Freedom ◽  
Institutional Environment ◽  
Positive Impact ◽  
Policy Implications ◽  
Regression Equations ◽  
Solow Model ◽  
The Impact

Abstract This study aims at assessing to what extent institutional environment is responsible for worldwide differences in economic growth and economic development. To answer this question, we use an innovative approach based on a new concept of the institutions-augmented Solow model which is then estimated empirically using regression equations. The analysis covers 180 countries during the 1993-2012 period. The empirical analysis confirms a large positive impact of the quality of institutional environment on the level of economic development. The positive link has been evidenced for all five institutional indicators: two indices of economic freedom (Heritage Foundation and Fraser Institute), the governance indicator (World Bank), the democracy index (Freedom House), and the EBRD transition indicator for post-socialist countries. Differences in physical capital, human capital, and institutional environment explain about 70-75% of the worldwide differences in economic development. The institutions-augmented Solow model, however, performs slightly poorer in explaining differences in the rates of economic growth: only one institutional variable (index of economic freedom) has a statistically significant impact on economic growth. In terms of originality, this paper extends the theoretical analysis of the Solow model by including institutions, on the one hand, and shows a comprehensive empirical analysis of the impact of various institutional indicators on both the level of development and the pace of economic growth, on the other. The results bring important policy implications.

scholarly journals The impact of immigrants' educational attainment on employment in agricultural, industrial, and services sectors in oecd

2018 ◽  
Vol 40 (1) ◽  
pp. 16-27
Author(s):  
Monika Didžgalvytė ◽  
Violeta Pukelienė ◽  
Ausra Speer
Keyword(s):  
Regression Analysis ◽  
Educational Attainment ◽  
Empirical Research ◽  
Empirical Analysis ◽  
Method Of Moments ◽  
Agricultural Sector ◽  
Generalized Method Of Moments ◽  
Descriptive Statistics ◽  
Skilled Immigration ◽  
The Impact

This article analyzes the impact of immigrants' educational attainment on employment in agricultural, industrial, and services sectors. The research compares data of OECD-20 countries in the period of 1980–2010. The goal of the paper is to analyze the theoretical interpretations of immigration and employment; to measure the impact of immigrants' educational attainment on employment by carrying out an empirical research in selected countries. Empirical analysis has been performed using the methods of descriptive statistics, correlation, regression analysis and System Generalized Method of Moments (GMMs). The results of the empirical research regarding the impact showed that high-skilled immigration has a positive and statistically significant impact on employment in industrial and services sectors, but the impact on employment in the agricultural sector is statistically insignificant. Medium-skilled immigration has a positive and statistically significant effect on employment in all three sectors. However, low-skilled immigration has no effect on employment in either agricultural, industrial or services sectors.

scholarly journals Research on the Influence of Interest Rate Liberalization on Commercial Banks’ Profitability in China

2021 ◽  
Vol 4 (5) ◽  
pp. 78-83
Author(s):  
Lina Wang ◽  
Hengyuan Zhao ◽  
Ruoxi Li
Keyword(s):  
Panel Data ◽  
Interest Rate ◽  
Empirical Analysis ◽  
Commercial Banks ◽  
Inflection Point ◽  
Early Stage ◽  
Interest Rate Liberalization ◽  
Large State ◽  
The Impact

In order to explore the influence of interest rate liberalization on profitability, an empirical analysis is carried out with the panel data of commercial banks in China from 2009 to 2019. Then, the heterogeneity of the impact is studied among different banks. The results show that, first, interest rate liberalization and commercial banks’ profitability have an inverted U-shaped relationship, whereby interest rate liberalization would increase the profitability of banks in the early stage but would reduce the profitability after reaching a peak inflection point at the later stage. Secondly, the impact varies among different banks, being more significant in urban commercial banks and large state-owned banks.

The Impact of Social Capital and Institutional Trust on Attitudes Towards Innovation

2018 ◽  
Vol 2018 (4) ◽  
pp. 3-24
Author(s):  
Asiya Bakhtigaraeva ◽  
Viktor Bryzgalin
Keyword(s):  
Social Capital ◽  
Institutional Environment ◽  
New Technology ◽  
Negative Attitude ◽  
Institutional Trust ◽  
Russian Regions ◽  
The Social ◽  
The Impact ◽  
The Relationship ◽  
Specific Technology

The article examines the impact of social capital and institutional trust on attitudes towards innovation. On a sample of 6077 respondents representing 10 Russian regions, it was found that social capital and institutional trust positively influence the attitude towards technologies in general. The analysis of a specific technology (automated judicial systems) showed that the relationship can also be reversed: the lower the social capital, the more positively the respondents refer to the introduction of new technology. These results may indicate that in conditions of poor institutional environment and in spheres that require high interpersonal and institutional trust, technologies allowing people to go to depersonalized relationships may be accepted, despite the negative attitude towards technologies in general. The findings allow us to take a fresh look at the prospects of introducing breakthrough technologies depending on the socio-cultural and institutional environment and contribute to the development of research on the impact of socio-cultural factors on the economy.

Open innovation in the new context of proof of concepts: evidence from Italy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mariacarmela Passarelli ◽  
Giovanni Catello Landi ◽  
Alfio Cariola ◽  
Mauro Sciarelli
Keyword(s):  
Empirical Analysis ◽  
Development Process ◽  
Positive Impact ◽  
Early Stage ◽  
Development Project ◽  
Proof Of Concept ◽  
Content Type ◽  
Main Factors ◽  
The Impact ◽  
The Empirical Analysis

PurposeThe paper aims to advance knowledge by investigating the main factors that impact on innovation through the co-development process between researchers and firms at the very early stage of proof of concept.Design/methodology/approachThe authors developed an empirical analysis on the proof of concept network project, through a mixed empirical analysis. They explored the main factors that affect the enactment of the co-development process and tested the impact of such factors on the probability for partners to enact a co-development project and generate innovation.FindingsFrom the quantitative analysis comes out that the trust of the research team into the potentiality of the technology, the commitment of researchers concerning the scalability of technology and the IP value issued by external experts have a positive impact on the probability to create a match among partners and generate innovation.Research limitations/implicationsEven if all the population of technologies (108) considered in the project implementation are analyzed, the development of the empirical analysis on a specific project within a single country represents a limitation. Future analysis will concentrate on a larger panel of proof of concept experience across Europe.Practical implicationsThe success of a co-development process between researchers and companies at the embryonic phase of the technology considers the opportunity to exploit the technologies into real products for the market.Originality/valueThis is an empirical analysis of the first Italian proof of concept implementation that deeply investigates which critical factors can enable innovation by enacting a co-development process between researchers and small and medium-sized enterprises (SMEs).

scholarly journals Institutional Quality and Economic Performance in the Southern African Development Community (SADC) Region: A Dynamic Panel Analysis

2021 ◽  
Vol 10 (2) ◽  
pp. 294-315
Author(s):  
Kholiswa Malindini ◽  
Keyword(s):  
Economic Growth ◽  
Economic Performance ◽  
Fixed Effects ◽  
Institutional Environment ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Institutional Quality ◽  
Domestic Investment ◽  
Governance Index ◽  
The Impact

The quality of institutions has increasingly become a key determinant of economic performance. This confirms a paradigm shift from the conventional macroeconomic determinants to governance as the crucial determining factor of economic performance, particularly in developing countries where economic growth is stagnant or moving at a meagre rate. With the aid of macroeconomic and governance data, this paper reports on an empirical analysis performed to quantify the impact of institutional quality on economic performance in Southern African economies over the period 2009-2019 by employing Generalized Method of Moments (GMM) technique with fixed effects. The empirical results indicate a negative and statistically significant coefficient for the governance index, inflation, and natural resources towards GDP growth. In contrast, trade openness, financial development, and domestic investment have positive and statistically significant coefficients. Based on the composite governance index, these results suggest that a weak institutional environment that aggravates corruption levels causes instability while also stimulating rent-seeking behaviour, which ultimately stifles economic performance in the region. Therefore, to attain inclusive and sustainable economic growth rates, the regional authorities should strengthen the law and enforce the rules.

scholarly journals Trade Openness and Diversification of External Financial Flows for Development: An Empirical Analysis

2020 ◽  
Vol 9 (1) ◽  
pp. 22-57
Author(s):  
Sèna Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
International Trade ◽  
Empirical Analysis ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Developed Countries ◽  
Development Aid ◽  
Data Set ◽  
Financial Flows ◽  
The Impact

The implementation of sustainable development goals (SDGs) adopted in 2015 by the international community in the Agenda 2030 requires a substantial mobilization of financial resources. In the meantime, Goal 17 of this Agenda recognizes trade as an important means of the implementation of the SDGs. The current article investigates empirically the impact of openness to international trade on the diversification of external financial flows for development, which could help developing countries achieve the SDGs by 2030. To that end, three major external flows for development have been considered: development aid inflows, migrants’ remittances inflows and foreign direct investment (FDI) inflows. The analysis relies on a panel data set comprising 116 countries, over the period 1970–2017. The empirical analysis relies primarily on the two-step system generalized method of moments (GMM) approach and shows that greater trade openness exerts a positive and significant impact on the diversification of external financial flows for development, in particular, in the least developed countries (LDCs). As a result, greater openness to international trade could be an important tool for external capital flows diversification in developing countries. JEL Classification: F13, F14, F21, F24, F35, O20

Social capital as a source of happiness: evidence from a cross-country analysis

2020 ◽  
Vol 48 (1) ◽  
pp. 159-179
Author(s):  
Muhammad Tariq Majeed ◽  
Isma Samreen
Keyword(s):  
Social Capital ◽  
Fixed Effects ◽  
Generalized Method Of Moments ◽  
Data Series ◽  
Institutional Trust ◽  
Generalized Trust ◽  
Content Type ◽  
Average Happiness ◽  
Capital Development ◽  
The Impact

PurposeThe purpose of this paper is to explore the impact of social capital on happiness. The previous literature generally measures social capital using “generalized trust”, which is a narrow dimension of social capital. In this study, social capital is measured as a multidimensional concept consisting of generalized trust, institutional trust and trust on family, neighborhood and strangers.Design/methodology/approachThis study explores the relationship between social capital and average happiness using a panel data of 89 countries from 1980 to 2017. The empirical analysis is done by employing pooled OLS (POLS), fixed effects method (FEM), random effects method (REM) and system generalized method of moments.FindingsThe findings demonstrate that all measures of social capital are positively associated with happiness while comparatively institutional trust and generalized trust appear more significant for happiness. The findings are robust to different robustness checks. The findings document the importance of social capital for average happiness.Research limitations/implicationsThe research has certain limitations. First, the objective of study was to cover global sample of countries, however, the data series were not available for all countries. Second, the empirical is restricted to global evidence instead of exploring separate estimates for developed and developing world.Originality/valueThe findings document the importance of social capital for average happiness. The awareness of the importance of social capital needs to be increased. Government can develop such organizations or institutions that are conducive for social capital development.

scholarly journals DYNAMIC PANEL DATA ANALYSIS OF THE IMPACT OF INTELLECTUAL PROPERTY RIGHTS ON ENTREPRENEURSHIP IN EMERGING AND DEVELOPING COUNTRIES

2020 ◽  
Vol 5 (1) ◽  
pp. 40-48
Author(s):  
Kamilia Loukil
Keyword(s):  
Developing Countries ◽  
Intellectual Property ◽  
Property Rights ◽  
Intellectual Property Rights ◽  
Panel Data Analysis ◽  
Generalized Method Of Moments ◽  
Dynamic Panel Data ◽  
New Business ◽  
Emerging And Developing Countries ◽  
The Impact

Entrepreneurship is considered as a key driver of economic growth and development. That is why, scholarly contributions have set out to identify its national determinants. In the present study, we aim to shed some light on to how the institutional framework affects the entrepreneurship levels, by focusing on emerging and developing countries. More specifically, this study examines the impact of intellectual property rights (IPR) on entrepreneurship in emerging and developing countries. This issue is becoming increasingly important, especially in the context of developing countries which adhere to the Trade Related Intellectual Property Rights Agreement (TRIPS). Further to this agreement, all member countries of the world trade organization are required to achieve high standards of IPR. From the theoretical analysis, it appears that the impact of IPR on innovative entrepreneurs is positive, while their impact on imitators is more ambiguous. To empirically test these hypotheses, we apply a System Generalized Method of Moments (System GMM) technique on a panel of 28 countries during the period 2005-2012. The entrepreneurship level is measured by the new business entry density while the protection degree of intellectual property rights is measured by the IPR index of World Economic Forum. The findings show a non-significant effect of IPR on new business entry. We conclude that the intellectual property rights are not an effective tool of industrial policy in emerging and developing countries. Governments should rely on other factors in order to spur entrepreneurship.

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