Impact of formal and informal institutional constraints on innovation: firm-level evidence from Tunisia

Hanen Sdiri ()

MPRA Paper from University Library of Munich, Germany

Abstract: Using data from the 2020 World Bank Enterprise Survey in Tunisia, we analyze the joint impact of formal and informal institutional constraints on the types of firms’ innovation. Moreover, we were interested in estimating the effect of the interaction between the two institutional constraints on the types of innovation. The main results of the econometric analysis show that the government system constraints have a positive and statistically significant effect on the likelihood of being an imitator. Furthermore, we show that the legal system constraints have a negative effect on the likelihood of being an innovator, but a positive effect on the probability of being an innovation pretender. We find a significant negative direct effect of commercial bribery on firm innovation. Moreover, the results show that the positive (negative) effect of the constraints from the government system (of the constraints from the legal system) on the probability of innovation will be alleviated by commercial bribery.

Keywords: Innovation.; Formal; Institutions.; Informal; Institutions.; Tunisian; firms (search for similar items in EconPapers)
JEL-codes: D73 E2 O12 O3 (search for similar items in EconPapers)
Date: 2022-05-10, Revised 2022
New Economics Papers: this item is included in nep-ara and nep-sbm
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Related works:
Journal Article: Impact of Formal and Informal Institutional Constraints on Innovation: Firm-Level Evidence from Tunisia (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:113792

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