Work

The Impact of Financial Development on Innovation Activities in Emerging and Developing Countries

Year: 2019

Type: article

Abstract: We investigate in this paper the effect of financial development on innovation in emerging and developing countries. The estimation of panel threshold model for a sample 54 countries during the period 1980-2009 shows the presence of non linear effects in the relationship between financial development and innovation. We find a threshold value of economic development below which the financial development level has no significant impact on innovation and above which financial development has a significant positive impact on innovation. In sum, our findings suggest that the presence of a healthy economic environment is crucial for financial institutions to offer high-quality financial services, promoting more innovation.

Source: Business and Economic Research

DOI: 10.5296/ber.v10i1.11235

Author: KamiliaKamilia LoukilLoukil

Institution: University of Sfax

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: hybrid

OpenAlex ID: W2995946533

FWCI: 4.845

Cites: 11

Cited by: 16

Related to: 10