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

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  • Sdiri, Hanen

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.

Suggested Citation

  • Sdiri, Hanen, 2022. "Impact of formal and informal institutional constraints on innovation: firm-level evidence from Tunisia," MPRA Paper 113792, University Library of Munich, Germany, revised 2022.
    • Handle: RePEc:pra:mprapa:113792
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    More about this item

    Keywords

    Innovation. Formal Institutions. Informal Institutions. Tunisian firms;

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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