INSTITUTIONAL GEARING, INNOVATION AND ECONOMIC GROWTH: EMPIRICAL ESTIMATION FOR 32 ECONOMIES

The objective of the paper is to estimate the relationship between institutional gearing and economic growth for 32 economies of the world. For this it is considered that institutional gearing is the positive effect that one institution has over another, but also above all the system that generates innovation. In addition, other variables were included that affect innovation. To do this, we estimate a data model panel with fixed effects for the period 2011-2015. The results show that institutional gearing, high technology exports and capital stock have a positive effect on economic growth. We conclude that the positive effect of the existence of an institution on another institution and on the system of innovation (institutional gearing) has a positive effect on the economic growth of the countries used