The status of countries within the global value chain varies depending on the importance of national production capabilities in the global economy. From this perspective, there is a need for a value-added production approach that focuses on innovation and competitiveness. Technological advances and institutions are considered to play a significant role in transforming the economy towards an innovation-driven one to meet these needs. The aim of this paper is to investigate the relationship among technological advances, the rule of law as a proxy for institutions, value-added production, and competitiveness in a way that reflects crosscountry divergence. Through an analysis employed independently of countries’ existing levels of development, it will be possible to evaluate whether the factors associated with institutions and innovation can produce similar results in all circumstances and for each country. In this context, a panel causality analysis that considers cross-sectional heterogeneity is employed. The analysis shows bidirectional causality between the variables, except for value-added to the rule of law. However, the results also support the existence of cross-country divergence. These findings suggest that future policy plans should be designed to consider the multidimensional nature of country-specific factors, alongside technological advances and the rule of law, and to ensure the integration of both national and international economic objectives.
JEL Classification : F10 , P48 , O32 , O47
Technological advance The rule of law Competitiveness Value-Added production
Birincil Dil | İngilizce |
---|---|
Konular | İşletme |
Bölüm | Araştırma Makalesi |
Yazarlar | |
Yayımlanma Tarihi | 4 Eylül 2024 |
Gönderilme Tarihi | 16 Mayıs 2023 |
Yayımlandığı Sayı | Yıl 2024 Cilt: 74 Sayı: 1 |