The Interaction of Innovation with Globalization and Institutional Quality on the Financial Wealth

Document Type : Research Paper

Authors

1 Professor, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran,

2 Ph.D. Student in Economics, Department of Economics, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran

3 Master’s in Economics, Faculty of Economic and Administrative Sciences, University of Mazandaran, Babolsar, Iran.

10.22051/jfm.2024.27150.2694

Abstract

Wealth and its place in countries has always been considered because it is produced with the support of countries's wealth and overshadows other macroeconomic variables. One of the components of wealth is financial wealth, which can affect the pattern of changes in economic variables and affect the consumption, savings, investment and production of countries, and also affect future incomes. Therefore, the purpose of this study is to investigate the interaction of innovation, globalization and the quality of governance institution on financial wealth in the top 48 science-producing countries in the world during the period 2011-2020. For this purpose, the research model has been estimated using integrated data and generalized torque method. The results show that the effect of all indicators of innovation (institutions, human capital and research, infrastructure, market complexity and business complexity) on financial wealth is positive and significant. Also, the interaction of all indicators of innovation, globalization and governance on financial wealth is positive and significant. In addition, the interaction of globalization and governance with the components of innovation on financial wealth is positive and significant. Therefore, it is recommended that the governments of the studied countries with low financial wealth help to increase financial wealth by improving the quality of governance and taking advantage of globalization opportunities and paving the way for improving the components of innovation.

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References

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History

  • Receive Date: 23 May 2023
  • Revise Date: 05 June 2023
  • Accept Date: 16 December 2023

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