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The Impact of Formal Institutions on Knowledge Economy

Author

Listed:
  • Antonio R. Andrés

    (Eastern Mediterranean University, Department of Economics)

  • Simplice A. Asongu

    (African Governance and Development Institute)

  • Voxi Amavilah

    (Glendale College)

Abstract

Using Kauffman, Kraay, and Mastruzzi governance indicators, this article analyzes the impact of formal institutions on the knowledge economy- by assessing how the enforcement of Intellectual Property Rights (IPRs) through good governance mechanisms affects the knowledge economy. The article also employs the World Bank’s four components of the knowledge economy index characteristic of its knowledge for development (K4D) framework. We estimate panel data models for 22 Middle East & North African and Sub-Sahara African countries over the period 1996-2010. The results show that for this group of countries the enforcement of IPR laws (treaties), although necessary, is not a sufficient condition for a knowledge economy. The results also suggest that other factors are more likely to determine the knowledge economies of these nations. Overall these findings have important implications for both policy and further research.

Suggested Citation

  • Antonio R. Andrés & Simplice A. Asongu & Voxi Amavilah, 2013. "The Impact of Formal Institutions on Knowledge Economy," Development Research Working Paper Series 05/2013, Institute for Advanced Development Studies.
    • Handle: RePEc:adv:wpaper:201305
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    References listed on IDEAS

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    Cited by:

    1. Simplice A. Asongu, 2014. "Taxation, foreign aid and political governance: figures to the facts of a celebrated literature," Research Africa Network Working Papers 14/022, Research Africa Network (RAN).
    2. Simplice Asongu, 2015. "On Taxation, Political Accountability and Foreign Aid: Empirics to a Celebrated Literature," South African Journal of Economics, Economic Society of South Africa, vol. 83(2), pages 180-198, June.
    3. Simplice A. Asongu, 2017. "Knowledge Economy Gaps, Policy Syndromes, and Catch-Up Strategies: Fresh South Korean Lessons to Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(1), pages 211-253, March.
    4. Voxi Heinrich AMAVILAH, 2016. "Social Obstacles to Technology, Technological Change, and the Economic Growth of African Countries: Some Anecdotal Evidence from Economic History," Turkish Economic Review, EconSciences Journals, vol. 3(2), pages 320-340, June.
    5. Oasis Kodila-Tedika & Simplice Asongu & Florentin Azia-Dimbu, 2015. "Statistics and IQ in Developing Countries: A Note," Working Papers of the African Governance and Development Institute. 15/030, African Governance and Development Institute..

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    More about this item

    Keywords

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    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • P00 - Political Economy and Comparative Economic Systems - - General - - - General
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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