Nexus between government effectiveness and technological innovation: empirical evidence from cross countries panel data
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Abstract/Description
Literature on relationship between government effectiveness (GE) and economic growth is in bulk; however only a few studies have focused on nexus between GE and technological innovation, among them most of the studies have analyzed the same case for firm level innovation in a single country. While, the studies on the link between GE and national technological innovation for cross countries is very limited. Thus, this study aims to investigate the impact of GE on technological innovation for cross countries. We employ OLS, Panel negative binomial and panel quantile regression on a panel data set of 58 economies for 2002 to 2018. The results of the study suggest that effective governance significantly increases national technological innovation in cross countries. Furthermore, the results from various robustness tests and different groups of countries (OECD and Non-OECD) also support our baseline results. The outcomes of this study are important for policymakers in framing better policies for fostering national technological innovation through effective governance.
Keywords
Government effectiveness, Technological innovation, Panel negative binomial, Panel quantile regression, Panel data
Session Theme
Governance, Finance and Fiscal Policy - Session IC
Session Type
Parallel Technical Session
Session Chair
Dr. Sana Tauseef, Chairperson, Department of Finance, Institute of Business Administration, Karachi
Session Discussant
Dr. Hilal Butt, Associate Professor, Institute of Business Administration, Karachi
Start Date
2-4-2021 2:30 PM
End Date
2-4-2021 4:00 PM
Recommended Citation
Ali, W., & Jun, W. (2021). Nexus between government effectiveness and technological innovation: empirical evidence from cross countries panel data. CBER Conference. Retrieved from https://ir.iba.edu.pk/esdcber/2021/day1/11
Nexus between government effectiveness and technological innovation: empirical evidence from cross countries panel data
Literature on relationship between government effectiveness (GE) and economic growth is in bulk; however only a few studies have focused on nexus between GE and technological innovation, among them most of the studies have analyzed the same case for firm level innovation in a single country. While, the studies on the link between GE and national technological innovation for cross countries is very limited. Thus, this study aims to investigate the impact of GE on technological innovation for cross countries. We employ OLS, Panel negative binomial and panel quantile regression on a panel data set of 58 economies for 2002 to 2018. The results of the study suggest that effective governance significantly increases national technological innovation in cross countries. Furthermore, the results from various robustness tests and different groups of countries (OECD and Non-OECD) also support our baseline results. The outcomes of this study are important for policymakers in framing better policies for fostering national technological innovation through effective governance.
