Unleashing innovation under sanctions : the catalyst of national culture

Phan, Anh Dang Bao and Dao, Daniel and Nguyen, Loan Thi Quynh (2024) Unleashing innovation under sanctions : the catalyst of national culture. International Journal of Finance and Economics. ISSN 1099-1158 (https://doi.org/10.1002/ijfe.3065)

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Abstract

This article explores how national culture moderates the impact of economic sanctions on a targeted country's innovation performance, using a dynamic difference-in-difference approach. Our empirical analysis utilises a panel dataset spanning 213 nations from 2013 to 2019. We discover that economic sanctions generally have a detrimental effect on the innovation performance of targeted countries. However, not all types of sanctions have the same negative impact on innovation. Specifically, financial, arms, and travel sanctions exhibit this negative influence. Furthermore, we reveal that under the sanction circumstances, countries characterised by high power distance and high uncertainty avoidance cultures tend to experience a higher level of innovation performance. Our findings remain robust after conducting various tests. In our subsequent analyses, we focus on different types of sanctions and find that the favourable impact of power distance and uncertainty avoidance culture on the relationship between sanctions and innovation applies primarily to financial sanctions.

ORCID iDs

Phan, Anh Dang Bao, Dao, Daniel ORCID logoORCID: https://orcid.org/0000-0001-9449-8003 and Nguyen, Loan Thi Quynh;
  • Item type:Article
    ID code:91150
    Dates:
    Date
    Event
    10 November 2024
    Published
    10 November 2024
    Published Online
    12 October 2024
    Accepted
    9 October 2023
    Submitted
    Notes:Copyright © 2024 John Wiley & Sons Ltd. This is the peer reviewed version of the following article: Phan, A.D.B., Dao, D. and Nguyen, L.T.Q. (2024), Unleashing Innovation Under Sanctions: The Catalyst of National Culture. Int J Fin Econ, which has been published in final form at https://doi.org/10.1002/ijfe.3065. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited.
    Subjects:Social Sciences > Finance
    Department:Strathclyde Business School > Accounting and Finance
    Depositing user: Pure Administrator
    Date deposited:13 Nov 2024 10:12
    Last modified:18 Nov 2024 01:18
    URI:https://strathprints.strath.ac.uk/id/eprint/91150
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