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The Impact of Institutional Features on R&D in Business Enterprise Sector and Sustainable Growth
- Source :
- Journal of Central Banking Theory and Practice, Vol 9, Iss 3, Pp 61-76 (2020)
- Publication Year :
- 2020
- Publisher :
- Walter de Gruyter GmbH, 2020.
-
Abstract
- The main goal of our study is to theoretically and empirically contribute to the analysis of relation between institutional features and R&D in business enterprise sector and consequently on sustainable economic growth. We exploited the available measures of institutional quality from World Government Indicators of World Bank and data on R&D in business enterprise sector. We employed First-Differencing GMM method to estimate the model on the balanced panel data including the following European countries: Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania, Serbia and the Slovak Republic, for the time span of 2007-2017. The institutional features are statistically significant factor of R&D in business enterprise sector. We found that Government effectiveness and Control of corruption in particular are very important in supporting the R&D. These measures of institutional quality are key institutional determinants of R&D in business enterprise sector. R&D in business enterprise sector is one of the crucial parts of the overall R&D, and therefore policymakers have to develop favourable conditions for those activities in private firms. Institutional features should be an important variable in explanation of R&D intensity. The presented analysis empirically contributes to the body of knowledge on determinants of R&D for European countries that have to develop their institutions further in order to grow sustainably. This study is using contemporary methods for testing the underlying problem.
- Subjects :
- o43
o31
Economics and Econometrics
050208 finance
HG1501-3550
government effectiveness
Strategy and Management
05 social sciences
sustainable growth
1. No poverty
o38
Banking
Business enterprise
control of corruption
8. Economic growth
0502 economics and business
Economics
institutions
050207 economics
Sustainable growth rate
Business management
General Economics, Econometrics and Finance
Finance
Industrial organization
Subjects
Details
- ISSN :
- 23369205
- Volume :
- 9
- Database :
- OpenAIRE
- Journal :
- Journal of Central Banking Theory and Practice
- Accession number :
- edsair.doi.dedup.....f87c196858a78c0ed14017128e4b9db6