Content uploaded by Abderraouf Abada
Author content
All content in this area was uploaded by Abderraouf Abada on Feb 03, 2025
Content may be subject to copyright.
2022
EISSN: ISSN : 2661-7986
*
Impact of Institutional Quality Determinants on Innovation in the
Arab Countries: Empirical Study
chaouki.chadli@univ-ouargla.dz
abada.abderraouf@univ-ghardaia.dz
Hamidat.amar@univ-ghardaia.dz
161204020203
JELO43O31C23
Abstract :
The aim of this study is to test the effect
of the institutional quality determinants:
(voice and accountability, political
stability and absence of violence,
government effectiveness, regulatory
quality, rule of law, control of corruption)
on the innovation in the Arab countries
during the period from 2011 to 2019. To
doing so, this paper uses the data of 11
Arab countries through estimation and
comparison between the Panel Data
models: pooled regression model, fixed
effects model, and the random effects
model. The results show that the random
effects model is appropriate, and
regulatory quality and control of
corruption negatively affecte the
Innovation, the result also found that
innovation is not affected by voice and
accountability, political stability and
absence of violence, government
effectiveness and rule of law.
Keywords: institutional quality
innovation; Panel data model.
JEL Classification: O43 ;O31 ; C23
229
(Hasan & Tucci, 2010)(verspagen,
2005)(Cameron, 1996) (barasa,
knoben, & vermeulen, 2017)(Segerstrom, 1991)(Ulku, 2004)
(Ndesaulwa &
Kikula, 2016, p. 7)
(Chong & calderon, 2000, p. 80)
(Tebaldi & Elmslie, 2013,
p. 887)Knack Keefer 1995
(Ali & CRAIN, 2001, p.
424)
(Tebaldi & Elmslie, 2013, p.
887)(Baris, 2019, p. 167)
(Hussen & Çokgezen,
2021, p. 25)
.
(huang & xu, 1999, p.
438)
(Tebaldi & Elmslie, 2013, p. 887)(Baris, 2019, p. 167)
231
.
".(OECD, 2009, p. 11)
2015, p. 649) (Bubel, Ostraszewska, & Turek,
North (Institutions )
(Faundez, 2016, p. 390)
Greif
(Alonso & Garcimartín, 2013, pp. 207-
208)Kauffman
(kaufmann, kraay,
& mastruzzi, 2011, p. 3)
:
:
:
233
AlonsoGarcimartín
(Alonso & Garcimartín, 2013, p. 208)Bakwena
(Bakwena, Bodman, & Le, 2009, p. 21)
(Vuong & napier, 2014, p. 654) Li
(Li, Naqvi, &
Caglar, 2020)Birku Reta
(Entele, 2021, p. 8)
(Wang, qiao, &
ahmed, 2021, p. 2).
(abdelkader, 2021, p. 191)
Anokhin
Schulze)(
(Anokhin & Schulze, 2009, p. 474)
(Hussen & Çokgezen,
2021, p. 17)
(Oluwatobi, Efobi, & Olurinola, 2015, p. 408)
235
(Jiao, Koo, & Cui,
2015, p. 9)
(barasa, knoben, & vermeulen, 2017, p. 282)
(Wang, qiao, & ahmed, 2021, p. 6) (Nguyen & Jaramillo, 2014, p. 13)
Çokgezen Husse
(Hussen & Çokgezen, 2021, p. 17)
NguyenJaramillo
(Nguyen & Jaramillo, 2014, p. 13)
JiaoKooCui
(Jiao, Koo, & Cui, 2015, p. 9)OluwatobiEfobi
Olurinola
(Oluwatobi, Efobi, & Olurinola, 2015, p. 408)
(Oluwatobi, Efobi, & Olurinola, 2015, p.
391)
(Oluwatobi, Efobi, & Olurinola, 2015, p. 408)
Hussen Çokgezen
WBES
(Hussen
& Çokgezen, 2021)
Baris
237
(Baris, 2019)
JiaoKooCui
(Jiao, Koo, & Cui, 2015)
Oluwatob,EfobiOlurinola
(Oluwatobi, Efobi, &
Olurinola, 2015)
(barasa, knoben, & vermeulen, 2017)
(Ayyagari, Demirgüç-Kunt, & Maksimovic, 2016)(Chadee & Roxas, 2013)
(Baris, 2019)(Tebaldi & Elmslie, 2013)
Kauffman (kaufmann, kraay, & mastruzzi, 2011, p. 3)
(worldbank, 2021)
(Hussen & Çokgezen, 2021)
(Baris, 2019)(Oluwatobi, Efobi, & Olurinola, 2015)
Panel Data
Minimum
Maximum
Mean
Std. Deviation
N
Name
Variable
8
3651
938.75
889.018
99
Patent
-1.9072
.3046
-1.090793
0.5330590
99
VOAC
-2.9933
1.2236
-0.803166
1.0490896
99
PSNV
-2.2794
1.5096
-0.159650
0.8805631
99
GOVE
-1.6738
1.1111
-0.264825
0.7940056
99
REGQ
-1.7899
.9585
-0.166057
0.7279389
99
ROL
-1.6815
1.2808
-0.182315
0.8068386
99
COC
Eviews.9
239
F-Test
LM Breush and Pagan
Hausman Test
Panel Data Models
i
t
(Patent)
2019T=09N=11 *
PRM
FEM
REM
Constante
507.8561
0.0777
614.8813
0.1813
554.4642
0.3028
VOAC
-365.2319
0.0406
-146.5126
0.7119
-127.0907
0.7065
PSNV
25.87511
0.9195
-414.1832
0.1012
-447.1909
0.0571
GOVE
849.3268
0.1139
151.5754
0.7397
268.9117
0.5329
REGQ
-792.7631
0.0423
-721.3613
0.0488
-787.6938
0.0244
ROL
-130.4307
0.7988
716.7182
0.1578
554.8200
0.2332
COC
234.3517
0.6960
1187.097
0.0108
1025.982
0.0119
R-squared
0.161850
0.834093
0.170440
Adjusted R-
squared
0.107188
0.801721
0.116338
Prob (F-statistic
0.010920
0.000000
0.007442
Eviews.9
RedundantFixed Effects Tests)
Lagrange Multiplier
Tests for Random Effects
Hausman Test
241
Redundant Fixed Effects Tests
Eviews 9.0
Cross-section F
H0
H1
Lagrange Multiplier Tests for Random Effects
Eviews 9.0
Lagrange
multiplier (Breusch-Pagan , Honda ,King-Wu, Standardized
Honda ,StandardizedHonda Standardized King-Wu, Gourierioux, et al.)
H0
H1
Hausman Test
Eviews 9.0
Hausman Test
H0
c0.0777
243
REGQ 0.0244
Patent
COC0.0119
(Patent)
(VOAC)
(PSNV)(GOVE)
(ROL)0.7065
0.05710.53290.2332
0.007442
(Xia, Tan, & Bai, 2018)
(Jiang & tan, 2019)
Barasa
(Barasa, 2018, p. 817)(Veracierto, 2008)
(Panel Data Models)
245
1. abdelkader, G. (2021). Mechanisms to eliminate corruption by controlling the
implementation of Public budge. Economics and Sustainable Development Review,
4(3), 189-200.
2. Ali, A., & CRAIN, W. M. (2001). Institutional distortions, economics freedom, and
growth. Cato J, 21, 415.
3. Alonso, J. A., & Garcimartín, C. (2013). The determinants of institutional quality.
More on the debate. Journal of International Development, 25(2), 206-226.
4. Anokhin, S., & Schulze, W. S. (2009). Entrepreneurship, innovation, and corruption.
Journal of business venturing, 24(5), 465-476.
5. Ayyagari, M., Demirgüç-Kunt, A., & Maksimovic, V. (2016). Firm innovation in
emerging markets: The role of finance, governance, and competition. Journal of
Financial and Quantitative Analysis, 46(6), 1545-1580.
6. Bakwena, M., Bodman, P., & Le, T. (2009). Avoiding the resource curse: The role of
institutions. Macroeconomics Research Group.
7. Barasa, L. (2018). Corruption, transaction costs, and innovation in Africa. African
Journal of Science, Technology. Innovation and Development, 10(7), 811-821.
8. barasa, l., knoben, j., & vermeulen, p. (2017). Institutions, resources and innovation in
East Africa: A firm level approach. Research Policy, 46(1), 280-291.
9. Baris, s. (2019). Innovation and institutional quality: Evidence from OECD countries.
Global Journal of Business, Economics and Management: Current Issues, 9(3), 165-
176.
10. Bubel, D., Ostraszewska, Z., & Turek, T. (2015). Innovation in developing countries-a
new approach. EIRP Proceedings, 10, 648-657.
11. Cameron, G. (1996). Innovation and economic growth. Centre for Economic
Performance, London School of Economics and Political Science.
12. Chadee, D., & Roxas, B. (2013). Institutional environment, innovation capacity and
firm performance in Russia. Critical perspectives on international business, 19-39.
13. Chong, a., & calderon, c. (2000). Causality and feedback between institutional
measures and economic growth. Economics & Politics, 12(1), 69-81.
14. Daniel kaufmannaart kraaymassimo mastruzzi. The Worldwide
Governance Indicators: Methodology and Analytical Issues1.Hague journal on the
rule of law
15. Entele, B. R. (2021). Impact of institutions and ICT services in avoiding resource
curse: lessons from the successful economies. Heliyon, 7(2).
16. huang, h., & xu, c. (1999). Institutions, innovations, and growth. , vol. 89, no 2, p. .
American Economic Review, 89(2), 438-443.
17. Hussen, M. S., & Çokgezen, M. (2021). The impact of regional institutional quality on
firm innovation: evidence from Africa. Innovation and Development, 11(1), 69-90.
18. Iftekhar HasanChristopher Tucci. The innovation–economic growth nexus:
Global evidencep.Research policy
19. Jiang, q., & tan, o. (2019). Corruption and enterprise innovation under the background
of transition in China. 6th International Conference on Behavioral, Economic and
Socio-Cultural Computing (BESC), 1-5.
20. Jiao, H., Koo, C. K., & Cui, Y. (2015). Legal environment, government effectiveness
and firms' innovation in China: examining the moderating influence of government
ownership. Technological Forecasting and Social Change, 96, 15-24.
247
21. Julio Faundez. Douglass North’s theory of institutions: lessons for law and
development.Hague Journal on the Rule of Law
22. Li, Y., Naqvi, B., & Caglar, E. (2020). N-11 countries: are the new victims of
resource-curse? Resources Policy, 67.
23. Ndesaulwa, A. P., & Kikula, J. (2016). The impact of technology and innovation
(Technovation) in developing countries: A review of empirical evidence. Journal of
Business and Management Sciences, 4(1), 7-11.
24. Nguyen, H., & Jaramillo, P. A. (2014). Institutions and firms' return to innovation:
evidence from the world bank enterprise survey. The World Bank Development
Research Group, 1-22.
25. OECD. (2009). Innovation in Firms: A Microeconomic Perspective.
26. Oluwatobi, S., Efobi, U., & Olurinola, I. (2015). Innovation in A frica: Why
Institutions Matter. South African Journal of Economics, 83(3), 390-410.
27. Segerstrom, P. (1991). Innovation, imitation, and economic growth. Journal of
political economy, 99(4), 807-827.
28. Tebaldi, E., & Elmslie, B. (2013). Does institutional quality impact innovation?
Evidence from cross-country patent grant data. Applied Economics, 45(7), 887-900.
29. Ulku, H. (2004). R&D, innovation, and economic growth: An empirical analysis.
30. Veracierto, M. (2008). Corruption and innovation. Economic Perspectives, 32(1).
31. verspagen, B. (2005). Innovation and economic growth. The Oxford handbook of
innovation, 1-30.
32. Vuong, q. h., & napier, n. k. (2014). Resource curse or destructive creation in
transition: Evidence from Vietnam's corporate sector. Management Research Review,
642-657.
33. Wang, c., qiao, c., & ahmed, r. i. (2021). Institutional Quality, Bank Finance and
Technological Innovation: A way forward for Fourth Industrial Revolution in BRICS
Economies. Technological Forecasting and Social Change, 163, 1-7.
34. worldbank. (2021, May 07). World Governance Indicators. Récupéré sur worldbank:
http://info.worldbank.org/governance/wgi/
35. Xia, H., Tan, Q., & Bai, J. (2018). Corruption and technological innovation in private
small-medium scale companies: does female top management play a role?
Sustainability, 10(7), 1-18.
Mena-oecd
