Governance and Exports Based on Superior Technology: A Case Study of G15 Countries

Abstract

Nowadays, knowledge is more and more applied in using domestic products, pushing the boundaries of technology, and increasing its penetration in the export development strategies. This has attracted economic theories to the factors that affect exports based on top technologies. One may refer to governance as the most important factor in this regard. The aim of the present study is to investigate the effect of governance on the high-technology-based exportation in G15 developing countries based on during the period 1991-2014. Using a panel data method, this econometric study points to a significant positive correlation between governance and other standard variables such as GDP per capita, exchange rate and FDI on one hand and the exports based on superior technology on the other hand. In fact, improvement in each aspect of governance (e.g. public participation, political stability, government effectiveness, knowledge-based policies, material and intellectual property rights, rules and regulations, freedom of speech, and control of corruption) has a statistically significant positive effect on exports of high technology.