Innovation in Africa: Why Institutions Matter
28 Pages Posted: 2 Jul 2014
Date Written: June 30, 2014
Given the role that innovation plays as an engine for economic development, we examined the enabling factor of institutions in Africa. Particularly, attention was given to determining the equivalent effects of institutional development on innovation. A sample of 40 African countries over the period 1996-2012 was employed; and our baseline equation was estimated using the Systems Generalized Method of Moments estimation technique. The empirical result, reveals that government effectiveness and regulatory quality are two institutional measures that have the most equivalent impact on innovation. This result is robust in diverse respects.
Keywords: Africa, Human Capital, Innovation, Institutions
JEL Classification: J24; O31; O32; O43
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