Abstract
This study aims to consider the causality between global geopolitical risk (GPR) and technology (TEC) using the rolling window approach. The results reveal that GPR has a significant impact on TEC across different sub-samples. It points out that GPR increases TEC and both are highly integrated and the geopolitical constraints are pivotal to TEC development. On the other hand, TEC leads GPR due to competition between countries for geopolitical dominance and security. The results back the Becker Model, which reveals that divergence of interests between countries drive TEC competition and systematically associated with GPR in a country. The international community should create a mechanism that supports interoperability and the states should pay attention to TECs that are critical to economic and strategic interests in the long run. Moreover, the states could enhance cooperation with the private sector which is an important determinant.
Highlights
We undertake this study with the primary purpose to recognize the relationship between geopolitical risk (GPR) and technology (TEC)
The results confirm that GPR is explaining TEC by rejecting the null at a 1% significance level. It implies that GPR is an important component of TEC development, access to new technologies, their expansion and regulations may become a driving force for GPR
It implies that GPR and TEC are highly integrated into political affairs and geopolitical conflicts increase TEC development
Summary
We undertake this study with the primary purpose to recognize the relationship between geopolitical risk (GPR) and technology (TEC). GPR is seen in the political, economic and military domain (Khan et al, 2020a) which may increase a country’s demands to develop TEC (Wrigley, 1978). TEC is an important feature of globalization, competitiveness and rate of development which is great challenge for countries. It acts as an important tool to overcome constraint and influence politics, military activities, deterrence, warfighting and peacemaking (Mallik, 2004; Diniz, 2019). TEC improves the living standards, it affects the conduct of states and war. TEC is absolutely the key enabler of modern statecraft and leaves no aspect untouched, and the natural law of the modern world to secure
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