Since 2014
The Roles of Formal and Informal Institution on Innovation Intensity
Jurnal Ekonomi Malaysia
View Archive Info| Field | Value | |
| Title |
The Roles of Formal and Informal Institution on Innovation Intensity
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| Creator |
Lee, Weng chang
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| Subject |
Innovation; Institutions; Social capital
O31; O43 |
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| Description |
This paper examines various roles of sub-component institutions (e.g formal and informal institution) on countries innovation intensity. The sample consists of 62 developed and developing countries. By adopting instrumental variable estimators, the paper finds evidence that formal and informal institutions are compliment to each other in determining countries innovation intensity. Moreover, the evidence suggests that innovation intensity tend to be higher in countries with higher social capital. Surprisingly, only corruption control is found to be significant towards innovation in the robustness test. In addition, we use simultaneous quantile regression to estimate whether the relation between institutions and innovation differs at different points in the conditional distribution of innovation intensity. The result indicate that formal institutions yield a significant positive impact only after exceed 50th percentile while informal institutions at 10th percentile. Thus, in addition to policy focus on law structure improvement, country with low innovation intensity should enhance social capital in short-run to promote innovation activity.
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| Publisher |
Universiti Kebangsaan Malaysia
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| Contributor |
—
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| Date |
2017-01-25
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Identifier |
http://ejournal.ukm.my/jem/article/view/8905
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| Source |
Jurnal Ekonomi Malaysia; Vol 50, No 2 (2016): Jurnal Ekonomi Malaysia; 167-180
0126-1962 |
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| Language |
en
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| Rights |
Copyright (c) 2017 Jurnal Ekonomi Malaysia
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