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- Title
Macroeconomic factors, liquidity issues and research and development investments: empirical evidence from the EU pharmaceutical industry.
- Authors
Curea, Mihaela; Ungureanu, Iuliana; Mironiuc, Marilena
- Abstract
In recent decades, the business landscape is influenced by corruption, a pervasive phenomenon, faced by all countries, irrespective of their stage of development. The pharmaceutical industry is recognized as a "fertile ground" for corrupt practices. The paper aims to investigate the impact of corruption, economic freedom, and gross domestic product (GDP) growth on research and development (R&D) investment using a dataset of European Union (EU) pharmaceutical companies from 2011 to 2019. It also investigates the moderating effect of liquidity issues on the relationship between corruption and R&D investment. The study employs a quantitative approach using fixed effects models. Results show that corruption has a negative influence on pharmaceutical firms' decision to undertake R&D activities, while economic freedom and GDP growth have a positive and significant impact on R&D investment. The findings are especially important given the deleterious effects of corruption and may be useful for both managers and policy-makers.
- Subjects
EUROPEAN Union; FIXED effects model; PHARMACEUTICAL industry; ECONOMIC liberty; RESEARCH &; development; CORRUPTION
- Publication
Eastern Journal of European Studies, 2023, Vol 14, Issue 1, p261
- ISSN
2068-651X
- Publication type
Article
- DOI
10.47743/ejes-2023-0113