Will institutional quality moderate the effects of national intellectual capital on economic growth?

In the knowledge-based economy, the significance of national intellectual capital for economic growth is well-established. However, the moderating influence of institutional quality on this dynamic has not been adequately addressed in prior research. This study examines the moderating role of institutional quality in the relationship between national intellectual capital and economic growth across 20 Asia-Pacific countries over the past two decades. Using DOLS and FMOLS techniques, which account for cross-sectional dependence and slope homogeneity in panel data, we examine how institutional quality influences the impact of national intellectual capital on economic growth. Our empirical findings indicate that increases in both national intellectual capital and institutional quality significantly contribute to economic growth. Moreover, the positive effect of national intellectual capital on economic growth is amplified by higher institutional quality. Additionally, we also find that enhancing international trade supports income per capita in the Asia-Pacific countries. These results suggest that policies aiming to support sustainable economic growth should prioritise knowledge management and international trade, particularly in the context of technological advancement.