Abstract

The determinants of innovation output in empirical literature were extensively investigated by considering diverse sets of variables. Still, the impact of economic policy uncertainty on innovation output is yet to unleash. To mitigate the existing research gap, the study investigated the association between EPU and innovation output, considering a panel of 22 countries over 1997–2018. The study employed a dynamic panel quantile regression and system-GMM specification causality test for discovering elasticity and directional association both in the long-run and the short-run. Study findings disclosed negative statistically significant effects running from EPU to innovation output except innovation measured by R&D. Moreover, institutional quality and FDI exposed positive and statistically significant association with innovation output. In terms of directional causality, unidirectional causality running from EPU and FDI to innovation output was established, whereas bidirectional causality was established between institutional quality and innovation output.

Details

Title
Do International Capital Flows, Institutional Quality Matter for Innovation Output: The Mediating Role of Economic Policy Uncertainty
Author
Qamruzzaman, Md 1   VIAFID ORCID Logo  ; Tayachi, Tahar 2   VIAFID ORCID Logo  ; Mehta, Ahmed Muneeb 3   VIAFID ORCID Logo  ; Ali, Majid 4 

1  School of Business and Economics, United International University, Dhaka 1212, Bangladesh 
2  Finance Department, Effat College of Business, Effat University, Jeddah 21478, Saudi Arabia; [email protected]; Finance Department, Faculté des Sciences Économiques et de Gestion de (FSEG) Mahdia, University of Monastir, Mahdia 5100, Tunisia 
3  Hailey College of Banking and Finance (HCBF), University of the Punjab, Lahore 54000, Pakistan; [email protected] 
4  Hailey College of Commerce (HCC), University of the Punjab, Lahore 54000, Pakistan; [email protected] 
First page
141
Publication year
2021
Publication date
2021
Publisher
Elsevier Limited
e-ISSN
21998531
Source type
Scholarly Journal
Language of publication
English
DOI
https://doi.org/10.3390/joitmc7020141
ProQuest document ID
2576662973
Copyright
© 2021 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.