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Can domestic institutions affect exports and innovation?: Mediation effects of institutional quality on manufacturing sector exports and innovation in developing countries

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  • Achinthya Koswatta

Abstract

Studies show that when exports go up, innovation goes up as well. But what is the mediating effect of domestic institutions in the association between exports and innovation? If any, which institutions are more likely to improve exports and innovation in developing countries, and how? To address this lacuna, this study employs estimations of industry fixed effects for 22 two-digit manufacturing industries in the period from 1996 to 2018. The first estimation includes 57 developing countries, and the second estimation excludes extreme outliers or unusual countries from the sample.

Suggested Citation

  • Achinthya Koswatta, 2022. "Can domestic institutions affect exports and innovation?: Mediation effects of institutional quality on manufacturing sector exports and innovation in developing countries," WIDER Working Paper Series wp-2022-83, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2022-83
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    References listed on IDEAS

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    More about this item

    Keywords

    Innovation; Mediation analysis; Institutions; Fixed effects; Manufacturing industries; Exports;
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