How the quality of institutions affects technological deepening in developing countries, Vol. 1 of 1

About

Countries

Data & Research

Learning

News

Projects & Operations

Publications

Topics

Home > Data & Research > Research > Author Profile > Report Details

How the quality of institutions affects technological deepening in developing countries

Author:	Clarke, George;	Collection Title:	Policy, Research working papers ; WPS 2603
Country:	World;	Date Stored:	2004/01/29
Document Date:	2001/04/25	Document Type:	Policy Research Working Paper
Language:	English	Region:	The World Region
Report Number:	WPS2603	SubTopics:	Environmental Economics & Policies; International Terrorism & Counterterrorism; Scientific Research & Science Parks; Economic Theory & Research; Science Education; Health Economics & Finance; Decentralization
Volume No:	1 of 1

Summary: This paper assesses the effect of institutional quality on research and development (R&D) expenditures in developing countries. The paper finds that the risk of expropriation and the rule of law are correlated with R&D expenditures. Since both institutional variables increase as institutional quality improves (i.e., as risk of expropriation decreases and rule of law improves), this suggests that stronger institutions encourage greater R&D expenditures. The result for the risk of expropriation is more highly significant and far more robust than the result for the 'rule of law'. Although R&D is not the primary way that developing countries gain access to technology, this result is interesting for at least two reasons. First, R&D might encourage technological deepening better than other methods that developing countries use to gain access to technology (e.g., through foreign direct investment (FDI) or capital goods imports). Second, past work has shown that another important way that developing countries gain access to technology, through FDI, is also positively correlated with institutional quality (i.e., as institutional quality improves, FDI increases).


Official Documents Official, scanned versions of documents (may include signatures, etc.)
File Type		Description	File Size (mb)

	PDF 23 pages	Official version*	1.61 (approx.)
	Text	Text version**


Light-Weight Documents Lighter (less MB) documents which may or may not be the final, official version
File Type		Description	File Size (mb)

	PDF 23 pages	WPS2603	0.11

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.

** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.

Permanent URL for this page: http://go.worldbank.org/JDSZJU5UO0