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Interrelationship among institutional infrastructure, technological innovation and growth. An empirical evidence

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  • Gregorio Gimenez
  • Jaime Sanau

Abstract

This paper uses a multi-equation model to achieve an overall study of two key factors which explain growth, technology and institutions. The paper focuses on the process of the accumulation of these factors and the interrelationship arising among them. A theoretical model is given, together with empirical evidence for the joint impact of these factors on economic growth in a wide-ranging sample of countries between 1985 and 1997. This paper also contributes certain novel aspects in the variables employed. Thus, an indicator of human capital and an index reflecting institutional infrastructure have been used. The human capital indicator considers health, formal education, informal education and accumulated experience. It embraces a wider range of factors than the variables conventionally used in empirical studies. As to the institutional infrastructure index, it has been constructed on the basis of six institutional sub-indices, comprising voice and accountability, political stability, government effectiveness, regulatory quality, rule of law and control of corruption. Thus, the index constructed captures a greater wealth of the items commonly covered by the concept of institutions.

Suggested Citation

  • Gregorio Gimenez & Jaime Sanau, 2007. "Interrelationship among institutional infrastructure, technological innovation and growth. An empirical evidence," Applied Economics, Taylor & Francis Journals, vol. 39(10), pages 1267-1282.
    • Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1267-1282
    DOI: 10.1080/00036840500438988
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    References listed on IDEAS

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    1. Shang-Jin Wei, 2000. "Natural openness and good government," Policy Research Working Paper Series 2411, The World Bank.
    2. Solow, Robert M., 2000. "Growth Theory: An Exposition," OUP Catalogue, Oxford University Press, edition 2, number 9780195109030.
    3. Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Aggregating governance indicators," Policy Research Working Paper Series 2195, The World Bank.
    4. James Harrigan, 1997. "Cross-country comparisons of industry total factor productivity: theory and evidence," Research Paper 9734, Federal Reserve Bank of New York.
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    1. Ajax Persaud & Javid Zare, 2023. "Institutional varieties, governance quality, and firm‐level innovation in emerging economies: Case of India," Growth and Change, Wiley Blackwell, vol. 54(1), pages 234-259, March.
    2. López, Santiago M. & Molero, José & Santos-Arteaga, Francisco J., 2011. "Poverty traps in a frictionless world: The effects of learning and technology assimilation," Structural Change and Economic Dynamics, Elsevier, vol. 22(2), pages 106-115, June.
    3. Galinato, Gregmar I. & Galinato, Suzette P., 2013. "The short-run and long-run effects of corruption control and political stability on forest cover," Ecological Economics, Elsevier, vol. 89(C), pages 153-161.
    4. Ugur, Mehmet, 2012. "Governance, Regulation and Innovation: Introducing New Studies," MPRA Paper 44151, University Library of Munich, Germany, revised Jan 2013.
    5. Gregmar Galinato & Suzette Galinato, 2010. "The Effects of Corruption Control and Political Stability on the Environmental Kuznets Curve of Deforestation-Induced Carbon Dioxide Emissions," Working Papers 2010-9, School of Economic Sciences, Washington State University.
    6. Ugur, Mehmet, 2012. "Market Power, Governance and Innovation: OECD Evidence," MPRA Paper 44141, University Library of Munich, Germany.
    7. Wu, Ruohan & Wang, Ning, 2024. "The mixed effects of innovation strategies and bribery on firm performance: A Re-investigation via institutional quality," Journal of Economic Behavior & Organization, Elsevier, vol. 224(C), pages 438-462.
    8. Mohammad, Shoeb & Yang, Jie & Butt, Irfan, 2024. "Does corruption have a sanding or greasing impact on innovation? Reconciling the contrasting perspectives through a systematic literature review," Research Policy, Elsevier, vol. 53(7).

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