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

  • Gregorio Gimenez
  • Jaime Sanau

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.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500438988
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Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 39 (2007)
Issue (Month): 10 ()
Pages: 1267-1282

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Handle: RePEc:taf:applec:v:39:y:2007:i:10:p:1267-1282
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