The Impact of Formal Institutions on Knowledge Economy

Journal of the Knowledge Economy, 6(4), pp. 682-703 (2015)

41 Pages Posted: 10 Sep 2014 Last revised: 7 Dec 2015

See all articles by Antonio Andrés

Antonio Andrés

Universidad Camilo José Cela

Simplice Asongu

African Governance and Development Institute

Voxi Heinrich S. Amavilah

REEPS

Date Written: June 8, 2013

Abstract

Using Kauffman, Kraay, and Mastruzzi governance indicators, this article analyzes the impact of formal institutions on the knowledge economy - by assessing how the enforcement of Intellectual Property Rights (IPRs) through good governance mechanisms affects the knowledge economy. The article also employs the World Bank’s four components of the knowledge economy index characteristic of its knowledge for development (K4D) framework. We estimate panel data models for 22 Middle East & North African and Sub-Sahara African countries over the period 1996-2010. The results show that for this group of countries the enforcement of IPR laws (treaties), although necessary, is not a sufficient condition for a knowledge economy. The results also suggest that other factors are more likely to determine the knowledge economies of these nations. Overall these findings have important implications for both policy and further research.

Keywords: Formal institutions; Knowledge economy; Panel data; Principal component analysis (PCA)

JEL Classification: O10; O34; O38; P00; P48

Suggested Citation

Andrés, Antonio and Asongu, Simplice and Amavilah, Voxi Heinrich S., The Impact of Formal Institutions on Knowledge Economy (June 8, 2013). Journal of the Knowledge Economy, 6(4), pp. 682-703 (2015). Available at SSRN: https://ssrn.com/abstract=2493378 or http://dx.doi.org/10.2139/ssrn.2493378

Antonio Andrés

Universidad Camilo José Cela ( email )

Castillo de Alarcón, 49 Urb
Villafranca del Castillo
Madrid
Spain

HOME PAGE: http://www.ucjc.es

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Voxi Heinrich S. Amavilah

REEPS ( email )

P.O. Box 38061
Phoenix, AZ 85069-8061
United States

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