How institutional quality and economic factors impact technological deepening in developing countries
AbstractThis paper assesses the effect of institutional and economic factors on research and development (R&D) expenditures in developing countries. The paper finds that several measures of institutional quality are correlated with R&D expenditures. Since the institutional variables increase as institutional quality improves, this suggests that stronger institutions and better protection of property rights encourage greater R&D expenditures. In addition, foreign direct investment is negatively correlated within R&D expenditures, while defense expenditures are positively correlated with R&D expenditures in some model specifications. Although R&D is not the primary way that developing countries gain access to technology, these results are of interest since R&D might encourage technological deepening better than other methods that developing countries use to gain access to technology (e.g., through FDI or capital goods imports). Copyright © 2001 John Wiley & Sons, Ltd.
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Bibliographic InfoArticle provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.
Volume (Year): 13 (2001)
Issue (Month): 8 ()
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