scholarly journals Traditional Values and Institutional Quality

2021 ◽  
Vol 17 (3) ◽  
pp. 38-58
Author(s):  
Necati Berk ◽  
◽  
Nurbek Madmarov ◽  
Keyword(s):  
Rule Of Law ◽  
Institutional Quality ◽  
Political Stability ◽  
Cultural Dimensions ◽  
Traditional Values ◽  
Positive Effects ◽  
Linear Relationships ◽  
Quality Of Institutions ◽  
The World

Why do similar economic and political institutions function differently in various cultures? This paper tries to identify potentially important factors related to the institutional quality. We investigate the relationship between cultures, cultural dimensions: non-tradition in particular, and formal institutions to explain differences in the quality of institutions around the world. We use a measure of traditional values, structured by Inglehart and Baker, from the World Values Survey, to extend the literature on the determinants of institutions’ quality. We show that differences in traditional values are suggestive to explain differences in the quality of institutions across countries. The OLS method is utilized in order to analyze the factors of institutional quality in sixty countries in 2010–2014. In this study, the OLS models are employed in order to understand the key factors of institutional differences among countries in the period of 2010–2014. The empirical model results show that (i) non-tradition is a reliable significant variable with positive contributions on six institutional quality variables, (ii) urbanization has unexpected negative effects on some institutional quality indicators like rule of law, political stability and voice/accountability. However, it has meaningful contribution to control of corruption in the countries, (iii) economic development have increasing impacts on the majority of the institutional quality variables, (iv) while education has positive effects on government effectiveness, political stability and regulation quality, it has negative unexpected impacts on rule of law and voice/accountability, (v) openness has only effects on corruption and political stability, (vi) there are non-linear relationships between dependent variable(s) and independent variables rather than linear relationships

scholarly journals The impact of institutional quality on economic growth: A comparative analysis of the EU and non-EU countries of Southeast Europe

2020 ◽  
Vol 65 (225) ◽  
pp. 163-181
Author(s):  
Marija Radulovic
Keyword(s):  
Economic Growth ◽  
Institutional Quality ◽  
Political Stability ◽  
Southeast Europe ◽  
Eu Countries ◽  
Regulatory Quality ◽  
Quality Of Institutions ◽  
The Impact ◽  
The Eu

The quality of institutions and its impact on economic growth has become more important in recent years, especially in transition countries that must reform their institutions to create a market economy and meet the preconditions for joining the EU. This is the case with the countries of Southeastern Europe, some of which are already EU members, while others are in the process of joining the EU. This paper examines the effects of institutional quality on the economic growth of South- East Europe and compares these effects in EU and non-EU countries for the period 1996-2017, using Worldwide Governance Indicators (WGI) to measure the quality of institutions and the GDP growth rate. The panel autoregressive distributed lag (ARDL) approach is used to analyse the relationship between institutional quality and economic growth. The results show that in EU countries there is a long-run relationship between institutional quality and economic growth for all significant variables, while in the non-EU countries only government effectiveness, political stability and absence of violence, regulatory quality, and voice and accountability are statistically significant. Furthermore, in EU countries there is no short-run relationship between institutional quality and economic growth, while in the non-EU countries of SEE, regulatory quality and voice and accountability are significant.

Engineers or Lawyers? Institutions and Demand for Higher Education

2012 ◽  
pp. 30-51 ◽  
Author(s):  
T. Natkhov ◽  
L. Polishchuk
Keyword(s):  
Higher Education ◽  
Public Administration ◽  
Rule Of Law ◽  
Transmission Channel ◽  
Demand For Education ◽  
Fields Of Study ◽  
Quality Of Institutions ◽  
Cross Country ◽  
Rules Of The Game

Law and public administration schools in Russia vastly exceed in their popularity sciences and engineering. We relate such lopsided demand for higher education to the quality of institutions setting “rules of the game” in economy and society. Cross-country and Russian interregional data indicate the quality of institutions (rule of law, protection of property rights etc.) is negatively associated with the demand for education in law, and positively — in sciences and engineering. More gifted younger people are particularly sensitive to the quality of institutions in choosing their fields of study, and such selection is an important transmission channel between institutions and economic growth.

Anti-Corruption Legislation In Turkish Law

2007 ◽  
Vol 8 (9) ◽  
pp. 903-914 ◽  
Author(s):  
Güne Okuyucu-Ergün
Keyword(s):  
European Union ◽  
Rule Of Law ◽  
Union Member ◽  
Political Stability ◽  
Foreign Investors ◽  
The Rule Of Law ◽  
The World ◽  
Almost All

Corruption poses an increasingly serious threat against Turkey as well as the rest of the world in many respects. The fight against corruption is crucial, in particular, to achieve an economic and political stability, to attract foreign investors and to establish the rule of law. In addition to those interests, which are common for almost all countries, anti-corruption has a particular importance for Turkey in the achievement of its goal of becoming a European Union member, since anti-corruption is expected to feature prominently in Turkey's talks on European Union accession.

scholarly journals Linkages between Dynamic Financial Inclusion and Institutions in ASEAN 8

2020 ◽  
Vol 21 (2) ◽  
pp. 174-186
Author(s):  
Tunjung Sekar Laksmi Pandhit ◽  
Malik Cahyadin
Keyword(s):  
Credit Card ◽  
Political Stability ◽  
Dynamic Panel Data ◽  
Financial Inclusion ◽  
Policy Implications ◽  
Debit Card ◽  
Quality Of Institutions ◽  
Domestic Credit ◽  
Asean Countries

Financial inclusion becomes a priority concern with governments in ASEAN countries such as reduce the  lack  of  access  for  public  to  formal  financial  institutions.  Moreover,  there  is  an  empirical  gap  of linkages between institutions and financial inclusion. Thus, the study aims to estimate the effect of institutions on dynamic financial inclusion. Three financial inclusion indicators are employed, namely: debit card ownership, credit card ownership, and domestic credit to GDP ratio. Institutional indicators consist of six indicators following world governance indicators. The research observations are about 88 consisting of cross-sections were eight of ASEAN countries and the time series was 2008-2018. Indeed, a dynamic panel data was employed. In general, the findings exhibit that FEM is the appropriate model under Hausman test. Specifically, debit card ownership and credit card ownership were determined by voice and accountability, and rule of law while domestic credit to GDP ratio was determined by some indicators of institutions such as voice and accountability, political stability, regulatory quality, and control of corruption. Hence, the policy implications were directed to improve the quality of institutions both country and ASEAN levels. The high quality of institutions will stimulate the acceleration and expansion of financial inclusion in ASEAN countries.

scholarly journals “World Class” or The Curse of Comparison?

2005 ◽  
Vol 35 (3) ◽  
pp. 27-55 ◽  
Author(s):  
Daniel W. Lang
Keyword(s):  
Public Policy ◽  
Institutional Quality ◽  
Research Quality ◽  
The World ◽  
World Class ◽  
Practical Effect ◽  
Definition Of

Can all the universities that claim to be “world-class” actually live up to the claim? If they could be, would that be desirable public policy? It could be that there are so many different meanings of “world-class” that the term in practical effect is an oxymoron: the definition of “world” is determined locally when conceptually it should be defined internationally. This paper discusses different kinds of institutional quality, how quality is formed and how it can be measured, particularly by comparison. It also discusses the subtle but fundamental differences between quality and reputation. The paper concludes with the suggestion that world-class comparisons of research quality and productivity are possible, but that any broader application to the “world-class” quality of universities will be at best futile and at worst misleading.

scholarly journals Increasing Supply of Tradable Goods in the Common Market for Eastern and Southern Africa (COMESA)

2015 ◽  
Vol 1 (2) ◽  
pp. 73-117
Author(s):  
Macleans Mzumara
Keyword(s):  
Foreign Direct Investment ◽  
Rule Of Law ◽  
Direct Investment ◽  
Institutional Quality ◽  
Political Stability ◽  
Government Effectiveness ◽  
Regulatory Quality ◽  
Tradable Goods ◽  
And Control ◽  
Control Of Corruption

The author investigated the nature of institutional quality in the Common Market for Eastern and Southern Africa (COMESA) on the basis of voice and accountability political stability, government effectiveness, regulatory quality, rule of law and control of corruption. The author further investigated the existence of a link between institutional quality and factors of production. The results show that capital, entrepreneurship and foreign direct investment are the major determinants of production of tradable goods in COMESA. In exception of Mauritius and Namibia (currently no longer a member) the rest of COMESA member states have very poor institutional quality. This affects their ability to attract foreign direct investment hence production of tradable goods. Voice and accountability, government effectiveness, rule of law and political stability play a major role in increasing production of tradable goods in COMESA. Foreign direct investment is affected by voice and accountability, rule of law and political stability than any other factors. Availability of raw material is affected by government effectiveness, regulatory quality, political stability, voice and accountability and control of corruption. Capital is very sensitive to issues of voice and accountability and control of corruption and regulatory quality.

scholarly journals Does Institutional Quality Matter in the Relationship Between Competition and Bank Stability? Evidence from Asia

2021 ◽  
Vol 36 (3) ◽  
pp. 283-301
Author(s):  
Muizzuddin Muizzuddin ◽  
Eduardus Tandelilin ◽  
Mamduh Mahmadah Hanafi ◽  
Bowo Setiyono
Keyword(s):  
Rule Of Law ◽  
Negative Impact ◽  
Generalized Method Of Moments ◽  
Institutional Quality ◽  
Political Stability ◽  
Bank Stability ◽  
Government Effectiveness ◽  
The Rule Of Law ◽  
Regulatory Quality ◽  
The Relationship

Introduction/Main Objectives: This study aims to investigate whether competition impacts bank stability. Furthermore, the study also analyzes the role of institutional quality in a country, such as voice and accountability, political stability, government effectiveness, regulatory quality, the rule of law, and control of corruption, forming the effect of competition on bank stability. Background Problem: Analysis of the relationship between competition and bank stability has been at the center of academic and policy debate. However, the theoretical and empirical research has not concluded whether bank competition leads to more or fewer stable banks. Novelty: We consider institutional quality's role in mitigating the negative impact of competition on bank stability, which has mainly been under-elaborated in prior studies, particularly in using measures from The World Bank’s Worldwide Governance Indicators, which measure how the institutions of each country influence bankers’ and the people's behavior, as part of the cultural system. Research Methods: Using a sample of 427 Asian commercial banks from 2011 to 2019, we employ the generalized method of moments (GMM) estimator and consider loan growth and the cost to income ratio as instrumental variables. Findings/Results: We find robust evidence that competition erodes bank stability. Besides, better institutional quality, especially government effectiveness, regulatory quality, the rule of law, and corruption control in each country are important aspects that promote bank stability and mitigate the negative impact of competition on bank stability. Conclusion: Competition has a negative impact on bank stability. Meanwhile, the quality of institutions can both promote bank stability and mitigate this negative relationship.

scholarly journals Environmental protection in selected one belt one road economies through institutional quality: Prospering transportation and industrialization

PLoS ONE ◽  
2021 ◽  
Vol 16 (1) ◽  
pp. e0240851
Author(s):  
Qiong Wu ◽  
Ghulam Rasool Madni
Keyword(s):  
Environmental Protection ◽  
Institutional Quality ◽  
Threshold Level ◽  
Environmental Deterioration ◽  
Time Period ◽  
One Belt One Road ◽  
Quality Of Institutions ◽  
Panel Threshold Regression

The effects of economic development on natural environment is explored by momentous literature, this study focuses on exploring the role of institutional quality for environmental protection in the selected One Belt One Road (OBOR) economies. The main goal of the paper is to find the threshold level of institutional quality that may minimize CO2 emissions in the atmosphere due to widespread industrialization and transportation. The data is selected for the panel of 33 OBOR economies over the time period of 1986–2018. The panel threshold regression technique is applied to determine the threshold level of institutional quality. The estimated results of the study reveal that 2.315 is the threshold level of institutional quality in selected partner OBOR countries. If quality of institutions is above the threshold level then CO2 emission do not contribute significantly for environmental deterioration in spite of growing industrialization and transportation and vice versa. The study emphasized to improve the institutional quality up to threshold level to get potential gains from industrialization and transportation.

scholarly journals Economic growth and quality of institutions in 27 postsocialist economies

2020 ◽  
Vol 47 (4) ◽  
pp. 769-787
Author(s):  
Constantinos Alexiou ◽  
Sofoklis Vogiazas ◽  
Nikita Solovev
Keyword(s):  
Economic Growth ◽  
Panel Cointegration ◽  
Institutional Quality ◽  
Supporting Evidence ◽  
Causality Analysis ◽  
Content Type ◽  
Long Run ◽  
Quality Of Institutions ◽  
The Relationship

PurposeThe relationship between institutional quality and economic growth is revisited.Design/methodology/approachA panel cointegration methodology and causality analysis are applied to 27 postsocialist economies over the period from 1996 to 2016.FindingsUtilizing the Worldwide Governance Indicators as a means of assessing the quality of institutions, it is found that in the long run, economic growth is positively associated with the rule of law and voice and accountability. In the short run, regulatory quality retains a positive effect, but voice and accountability demonstrate a puzzling negative effect on economic growth that merits further analysis. In exploring the causal dimension of our variables, supporting evidence of the strong links between the quality of institutions and economic growth is provided, hence rendering robust results.Originality/valueTo the best of the authors’ knowledge, it is the first time that an ARDL methodological framework, which addresses potential endogeneity issues, is used to investigate the relationship between institutional quality and growth in the context of postsocialist economies.

scholarly journals Exploring the links between tourism and quality of institutions

2019 ◽  
pp. 215-247
Author(s):  
Eva Mª Buitrago Esquinas ◽  
Mª Ángeles Caraballo Pou
Keyword(s):  
Income Inequality ◽  
Economic Freedom ◽  
Institutional Quality ◽  
Positive Association ◽  
Econometric Analysis ◽  
Quality Of Institutions ◽  
New Perspective

This paper introduces a new perspective on the impacts of tourism on host communities by analyzing the links between tourism specialization and quality of institutions. Our research has two principal aims: firstly, to test the significance and sign of this relationship; and secondly, to explore the channels through which tourism could affect institutional quality. To this end, an econometric analysis is conducted using a sample of 92 countries over the period 1995-2014. The results indicate that there is a significant and positive association between tourism specialization and institutional quality. Moreover, this relation can be explained through three main channels: level of income, income inequality, and economic freedom. Este trabajo aporta una nueva perspectiva sobre los impactos del turismo analizando las relaciones entre la especialización turística de un país y la calidad de sus instituciones. La investigación plantea dos objetivos: (1) testar empíricamente la significatividad y signo de dichas relaciones y (2) explorar los canales a través de los que se producen. Realizamos un análisis econométrico para 92 países y 20 años. Los principales resultados indican la existencia de una asociación significativa y positiva entre turismo y calidad institucional que se produce principalmente a través de tres canales: nivel de renta, distribución de la renta y libertad económica.

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