| Description |
There exists substantial evidence that technological innovation and, more specifically, innovation creating high-tech exports, is a crucial driver for economic growth. However, there is less consensus of the factors that cause high-tech exports to thrive. Most studies emphasize the crucial role played by research and development (R&D) expenditures, foreign direct investment (FDI), trade openness, human capital, and patents. In this article, we instead examine the role of a different determinant, which is usually overlooked in the scholarly debate governance institutions. We use government effectiveness and rule of law as measures of governance. We employ a panel data approach covering more than 100 countries between 2007 and 2019. The panel estimates show a causal relationship linking government effectiveness and the rule of law with high-tech exports.
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ICAR Research Data Repository for Knowledge Management