Financial development and innovation: Do institutions and human capital matter?
This paper explores the dynamic link between financial development and innovation, while accounting for human capital and institutional quality for 29 OECD countries spanning 40 years (1980–2019). The findings based on Generalized Method of Moments (GMM) and the Fully Modified Ordinary Least Squares...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Elsevier
2023-08-01
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| Series: | Heliyon |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844023062230 |
| _version_ | 1797732947759988736 |
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| author | Francis Atsu Samuel Adams |
| author_facet | Francis Atsu Samuel Adams |
| author_sort | Francis Atsu |
| collection | DOAJ |
| description | This paper explores the dynamic link between financial development and innovation, while accounting for human capital and institutional quality for 29 OECD countries spanning 40 years (1980–2019). The findings based on Generalized Method of Moments (GMM) and the Fully Modified Ordinary Least Squares (FMOLS) estimators show that trade, institutional quality, human capital and financial development promote innovation activities, while foreign direct investment has the opposite effect. Further, the findings show a non-linear relationship between finance and innovation. |
| first_indexed | 2024-03-12T12:20:52Z |
| format | Article |
| id | doaj.art-a3545b970807465d8e8db367c2d05b0a |
| institution | Directory Open Access Journal |
| issn | 2405-8440 |
| language | English |
| last_indexed | 2024-03-12T12:20:52Z |
| publishDate | 2023-08-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj.art-a3545b970807465d8e8db367c2d05b0a2023-08-30T05:53:26ZengElsevierHeliyon2405-84402023-08-0198e19015Financial development and innovation: Do institutions and human capital matter?Francis Atsu0Samuel Adams1Department of Accounting and Finance, Business School, Ghana Institute of Management and Public Administration, P.O. Box AH 50, Achimota, Accra, Ghana; Corresponding author.School of Public Service and Governance, Ghana Institute of Management and Public Administration, P.O. Box AH 50, Achimota, Accra, GhanaThis paper explores the dynamic link between financial development and innovation, while accounting for human capital and institutional quality for 29 OECD countries spanning 40 years (1980–2019). The findings based on Generalized Method of Moments (GMM) and the Fully Modified Ordinary Least Squares (FMOLS) estimators show that trade, institutional quality, human capital and financial development promote innovation activities, while foreign direct investment has the opposite effect. Further, the findings show a non-linear relationship between finance and innovation.http://www.sciencedirect.com/science/article/pii/S2405844023062230InnovationFinancial developmentOECDHuman capitalInstitutional quality and non-linear relationship |
| spellingShingle | Francis Atsu Samuel Adams Financial development and innovation: Do institutions and human capital matter? Heliyon Innovation Financial development OECD Human capital Institutional quality and non-linear relationship |
| title | Financial development and innovation: Do institutions and human capital matter? |
| title_full | Financial development and innovation: Do institutions and human capital matter? |
| title_fullStr | Financial development and innovation: Do institutions and human capital matter? |
| title_full_unstemmed | Financial development and innovation: Do institutions and human capital matter? |
| title_short | Financial development and innovation: Do institutions and human capital matter? |
| title_sort | financial development and innovation do institutions and human capital matter |
| topic | Innovation Financial development OECD Human capital Institutional quality and non-linear relationship |
| url | http://www.sciencedirect.com/science/article/pii/S2405844023062230 |
| work_keys_str_mv | AT francisatsu financialdevelopmentandinnovationdoinstitutionsandhumancapitalmatter AT samueladams financialdevelopmentandinnovationdoinstitutionsandhumancapitalmatter |