Institutional quality-led Technological Innovation in Lower-income nations: Does Trade and Education matter
School of Business and Economics, United International University, Dhaka, Bangladesh.
Research Article
GSC Advanced Research and Reviews, 2023, 16(03), 026–044.
Article DOI: 10.30574/gscarr.2023.16.3.0351
Publication history:
Received on 20 July 2023; revised on 02 September 2023; accepted on 04 September 2023
Abstract:
The primary objective of this study is to comprehensively examine the underlying factors that contribute to the promotion of technological advancement within these nations, with the ultimate aim of offering well-informed and efficacious policy recommendations. The present study utilizes a robust methodology, incorporating a comprehensive dataset and employing rigorous statistical analysis techniques. The study's results demonstrate a noteworthy and statistically significant correlation between institutional quality and technological innovation. This suggests that nations with more robust institutions foster an environment conducive to developing and advancing innovative practices. The present study is underpinned by a comprehensive review of existing literature, which substantiates and reinforces the significance of institutions in fostering and facilitating innovation and entrepreneurship. Moreover, the present study reveals a significant positive correlation between trade openness and technological innovation, underscoring the facilitative impact of domestic and international trade on the innovation process. Furthermore, this study elucidates the constructive impact of education on technological innovation, underscoring the significance of easily attainable and high-quality education in nurturing innovation. Based on the empirical evidence presented in this study, it is recommended that policymakers accord high priority to implementing institutional reforms, facilitating trade integration, and allocating resources towards education to effectively stimulate and nurture technological advancements within lower-income nations. Nevertheless, it is imperative to acknowledge the necessity of contemplating alternative explanations and contextual factors that might influence the interplay between these variables. This study offers significant insights that can greatly benefit policymakers and practitioners interested in fostering innovation-driven development in lower-income countries.
Keywords:
Technological innovation; Trade openness; Institutional Quality, Dynamic Seemingly Uncorrelated Regression
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Copyright © 2023 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0
