IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v27y2020i1p5-8.html
   My bibliography  Save this article

Modelling the causal linkages between trade openness, innovation, financial development and economic growth in OECD Countries

Author

Listed:
  • Walid Belazreg
  • Kais Mtar

Abstract

Using a panel vector auto-regressive model, we study interactions between trade openness, innovation, financial development, and economic growth in 27 OECD countries between 2001–2016. We focus on four-way linkage between these variables. Our empirical results show that there is a neutral relationship between economic growth and innovation, between innovation and financial development and between innovation and trade. Similarly, we have found a unidirectional relationship between economic growth and financial development and between financial development and trade. Finally, our results show a bidirectional relationship between economic growth and trade. Our empirical results show that among all, policy-makers need to invest more in human capital both in terms of developing entrepreneurial skills and education as well as creating better conditions for the development of creativity in the economy in order to improve national absorptive capabilities and develop the innovation potential of their economies.

Suggested Citation

  • Walid Belazreg & Kais Mtar, 2020. "Modelling the causal linkages between trade openness, innovation, financial development and economic growth in OECD Countries," Applied Economics Letters, Taylor & Francis Journals, vol. 27(1), pages 5-8, January.
    • Handle: RePEc:taf:apeclt:v:27:y:2020:i:1:p:5-8
    DOI: 10.1080/13504851.2019.1605581
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2019.1605581
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2019.1605581?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hung, Ngo Thai, 2023. "Green investment, financial development, digitalization and economic sustainability in Vietnam: Evidence from a quantile-on-quantile regression and wavelet coherence," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).
    2. Chishti, Muhammad Zubair & Sinha, Avik, 2022. "Do the shocks in technological and financial innovation influence the environmental quality? Evidence from BRICS economies," Technology in Society, Elsevier, vol. 68(C).
    3. Elżbieta Roszko-Wójtowicz & Gagan Deep Sharma & Barbara Dańska-Borsiak & Maria M. Grzelak, 2024. "Innovation-Driven E-Commerce Growth in the EU: An Empirical Study of the Propensity for Online Purchases and Sustainable Consumption," Sustainability, MDPI, vol. 16(4), pages 1-28, February.
    4. Muhammad Usman Arshad & Muhammad Nadir Shabbir & Momna Niazi, 2023. "Trade Openness and Public Innovation: A Causality Analysis," SAGE Open, , vol. 13(3), pages 21582440231, September.
    5. Saleh Abdul Mola Al-Zaroog & Dr. Amer Abdul Fatah Baqir, 2020. "The Impact of Global Innovation on Economic Growth in Developing Countries," Journal of Social Sciences (COES&RJ-JSS), , vol. 9(2), pages 373-393, April.
    6. Li, Guangchen & Wei, Weixian, 2021. "Financial development, openness, innovation, carbon emissions, and economic growth in China," Energy Economics, Elsevier, vol. 97(C).
    7. Thanh Le & Ngoc Vu Bich & Sau Mai & Ha Nguyen & Hung Bui, 2023. "Financial Development and International R&D Spillovers Through Trade: Evidence From Developing Countries," SAGE Open, , vol. 13(1), pages 21582440231, March.
    8. Skare, Marinko & Gavurova, Beata & Rigelsky, Martin, 2023. "Innovation activity and the outcomes of B2C, B2B, and B2G E-Commerce in EU countries," Journal of Business Research, Elsevier, vol. 163(C).
    9. IWASAKI, Ichiro & ONO, Shigeki, 2023. "Economic Development and the Finance-Growth Nexus : A Meta-Analytic Approach," CEI Working Paper Series 2023-06, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    10. Dieudonné Mignamissi & Bernard Nguekeng, 2022. "Trade openness-industrialization nexus revisited in Africa," Economic Change and Restructuring, Springer, vol. 55(4), pages 2547-2575, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:27:y:2020:i:1:p:5-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.