Search

In the current society, institutional quality is essential to innovation activity, as formal and informal institutions have a positive impact on innovation. Formal institutional quality establishes the intellectual property rights culture that lowers the transaction costs, required to stimulate the innovation process. Strengthen informal institutions inseminate mutual trust and cooperation, necessary to share the previous knowledge, which is mandatory to invent new ideas. Thus, this study aims to investigate the effect of formal and informal institutions and their indicators on innovation activities. We construct the indices to measure the quality of formal and informal institutions using data on 73 countries for the period 1981–2014. The system GMM estimation technique is used to predict the performance of formal and informal institutions on innovation activities. Besides, this study estimates the effect of each indicator of formal as well as informal institutions on innovations after controlling for FDI, human capital, trade and government size. The hypotheses of positive effects of formal and informal institutional quality is accepted. The size of the effect of different indicators of institutions are varying. The results are robust across developed and developing countries. From a policy perspective, this study suggests that more focused monitoring of institutions is required to improve their quality that ultimately effects innovation activities. [ABSTRACT FROM AUTHOR]

The objective of this paper is to explore how environmental protection expenditures (EPE) affect innovation and investigate the potential causal relationship between the two variables. The novelty and main contribution of our paper to the literature stems from the fact that we look at total environmental protection expenditures from both the public and private sectors, and distinguishing between corporations and households in the private sectors. We also consider both inputs and outputs of innovation and address potential endogeneity issues in this relationship, which are both lacking in the current literature. Using a panel of EU countries over the period 2006–2020, this study generally finds a positive impact of EPE on innovation after controlling for the effects of trade, credit, education and inflation on innovation, and using the System GMM estimator to treat endogeneity. Moreover, EPE from the government sector drives the bulk of this positive impact. The core results are robust to alternative measures of innovation, alternative estimation techniques that address endogeneity (i.e., the Lewbel 2SLS, Mundlak, and Hausman-Taylor estimators) and the moderation effects of Climate Change Performance (CCPI). This study also provides a useful guide to policy makers engaged in environmental planning. • We evaluate the impact of environmental protection expenditures (EPE) on innovation in mainly EU countries. • We use longitudinal dataset for the group of EU countries over the period 2006–2020. • We find a positive impact of EPE on innovation. • The results are robust for observable heterogeneity, alternative measures of innovation and estimation techniques. • This study provides a useful guide to policy makers engaged in environmental planning. [ABSTRACT FROM AUTHOR]

This paper investigates the relationship between women empowerment and income inequality. In particular, we examine whether empowering women in terms of raising their political, social and economic rights reduce income inequality. Furthermore, this paper also sheds light on the effects of women empowerment on income inequality in different economies characterized by income differences. Using data for 134 countries from 1945 to 2015, we estimate a panel data model with treatment for endogeneity, controlling for savings rate, arable land rate and age-dependency ratio. Our results indicate that women empowerment in all three aspects (social, political and economic) plays an important role in reducing income inequality. This effect is more prominent in lower-middle and upper-middle income countries and is robust to different measures of inequality and women empowerment, and an alternative estimation technique that takes care of endogeneity. [ABSTRACT FROM AUTHOR]

This study examines the relationship between attitudes toward migrants and social integration. Specifically, we consider two types of migration flow: migration flow from EU countries and migration flow from non-EU countries. The aims of this paper are twofold: (1) we want to understand whether an inclusive attitude towards migrants can contribute to their efforts to integrate with the receiving society (2) we want to understand whether the potential impact is the same across different migrant groups (EU vs. non-EU). Using data from 33 mainly European countries over the period 2003–2016 and controlling for common integration determinants such as inflation, foreign direct investment and educational attainment, our results indicate that there is a significant positive relationship between inclusive and good attitude toward migrants and social integration. We also in the robustness sections, identify that the size of this impact differs across different subcomponents of attitudes and integration, these results are robust to alternative estimation techniques that take cares of endogeneity (System GMM, 2SLS, and Lewbel 2SLS). [ABSTRACT FROM AUTHOR]

This study examines the relationship between social inclusions of migrant and income inequality. Both positive and negative impacts of social inclusion on income inequality have been observed in the previous literature. This study specifically considers two types of migration flow: migration flow from EU and migration flow from non‐EU. The aim of this article is twofold: 1) is there a strong association between social inclusion of migrants and income inequality, 2) is there any different impact of social inclusion of two types of migrants (EU vs non‐EU)? Using data from 33 mainly European countries over the period 2003‐2015 and controlling for savings rate, arable land rate and age‐dependency ratio, our results indicate that there is a significant negative relationship between social inclusion and income inequality. In particular, we find that social inclusion from non‐EU migrants significantly reduces income inequality compare with EU migrants. [ABSTRACT FROM AUTHOR]

This paper investigates the relationship between different religious groups and income inequality. In particular, we examine whether different religious groups (Christianity, Islam, Judaism and Buddhism) have an impact on income inequality in a global perspective. Furthermore, this paper also sheds light on the effects of major religious sub-groups (Christianity and Islam) on income inequality. Using data for 130 countries from 1970 to 2013, we estimate a panel data model, controlling for religious beliefs, savings rate, arable land rate and age-dependency ratio. Our results indicate that religion plays an important role in explaining income inequality. In particular, we found that Islam and Judaism reduce income inequality while in general, Christianity and Buddhism increases inequality. However, the effects from sub-groups of Christianity on inequality are mixed; in particular, Anglican and Orthodox significantly reduce inequality while the effect from Catholic and Protestant is opposite. These findings are robust to different measures of inequality and alternative estimation techniques that take care of endogeneity. [ABSTRACT FROM AUTHOR]

The role of infrastructure in poverty alleviation remains ambiguous due to weak institutions in developing countries. Considering spatial dependence, this study provides empirical evidence on the role of rural infrastructure in poverty alleviation using district-wise data of Pakistan. Results indicate positive direct as well as spatial spillover effects of financial infrastructure and female education infrastructure while positive direct effects of energy infrastructure are observed. The insignificant role of health and transportation infrastructure in poverty alleviation is a matter of serious concern. From a policy point of view, allocation of sufficient financial resources, improvement of female education infrastructure in rural areas and reformulation of health and transportation policies should be priority steps for poverty alleviation. An adverse effect of male education infrastructure on poverty reduction is detected, which needs further exploration. Adverse spillover effects of water and sanitation infrastructure on poverty may suggest the authorities to revise the implementation procedure of National Sanitation and Drinking Water Policy. The analysis might be relevant to the South Asian region due to homogeneous economic development. Moreover, the study provides evidence informing the debate on balanced regional development in developing countries with a particular focus on high and medium level of poverty clusters. [ABSTRACT FROM AUTHOR]

Abstract: This article analyses differences in dynamic transitions into and out of any of the five hourly wage quintiles and quintile zero (unemployed and non‐employed people) between immigrants and natives for the period 1993‐2004. Using Longitudinal Level data from Survey of Labour and Income Dynamics (SLID) for men aged 25 to 55, we investigate how unobserved heterogeneity factors and initial conditions may affect individuals’ propensity to stay in or leave any of the wage quintiles. We also consider a dynamic multinomial logit model with the random effects approach. Empirical results show that state dependence exists in all hourly wage quintiles. Moreover, education, experience, marital status, immigrant minority status, and age at immigration are significant factors determining hourly wage differentials between immigrants and natives. [ABSTRACT FROM AUTHOR]