scholarly journals On The Relation Between Regulation And Economic Growth

2012 ◽  
Vol 11 (2) ◽  
pp. 147
Author(s):  
Atul A. Dar ◽  
Sal AmirKhalkhali
Keyword(s):  
Economic Growth ◽  
Fixed Effects ◽  
Developed Economies ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
The World Bank ◽  
Quality Scale ◽  
Positive Growth ◽  
Accounting Model

This paper examines the relation between regulation and economic performance in the context of 23 developed economies. We apply a generalisation of the growth accounting model popularized by Solow to data over the 2002-2008 period. In the model, we assume that regulatory quality impacts on growth via its impact on total factor productivity growth. We look at three measures of regulatory quality, all of which are based on the set of governance indicators developed by the World Bank. The model is estimated using a fixed effects as well as a random effects estimation strategy. Our findings do lend support for the view that the better the quality of regulation, the higher rate of economic growth, but find no support for the view that the strength of the positive growth impact is stronger for countries that rank relatively lower on the regulatory quality scale.

scholarly journals Measuring institutional respect and State capacities in South America. A relational analysis on four dimensions of the Worldwide Governance Indicators (2017-2018)

AWARI ◽  
2020 ◽  
Vol 1 (1) ◽  
Author(s):  
Nicolás Vladimir Chuchco
Keyword(s):  
South America ◽  
Good Governance ◽  
Private Companies ◽  
International Investments ◽  
Four Dimensions ◽  
Developed Economies ◽  
Governance Indicators ◽  
The World Bank ◽  
Relationship Network ◽  
The Relationship

The measurement of “good governance” has become an object of (e) valuation by international actors. In this regard, it has occupied the attention of investors, donors, private companies, development agencies, academics, journalists, governments, and credit organizations in the last 30 years, accompanied by a greater flow of international investments to under developed economies. Among these indicators, the Worldwide Governance Indicators (WGI) produced by the World Bank stand out. Although these numbers are not used directly by the Bank to condition resources, they are used by organizations such as the Millennium Challenge Corporation (MCC) to decide in which countries allocate financial aid based on the results of some of the dimensions of these indicators. For this reason, this work seeks to investigate the relationships networks that exist between the indicators and the organizations that participate in providing data, asking about what type of organizations produce inputs of certain dimensions, what relationships they have with each other and with others, in terms of participation, and where the central houses that produce these inputs are located geographically. For this, we have analyzed and characterized the relationship network of production about four dimensions of the WGI indicators, according to the organizations that provided data for South America during the period 2017-2018. The main results obtained indicate that a small number of international organizations in the Northern hemisphere have greater participation in the supply of inputs, highlighting private companies or organizations linked to them.

scholarly journals Corruption, governance and economic growth in Sub-Saharan Africa: a need for the prioritisation of reform policies

2014 ◽  
Vol 10 (2) ◽  
pp. 316-330 ◽  
Author(s):  
Kamil Omoteso ◽  
Hakeem Ishola Mobolaji
Keyword(s):  
Economic Growth ◽  
Rule Of Law ◽  
Political Stability ◽  
Content Type ◽  
Governance Indicators ◽  
Data Framework ◽  
Regulatory Quality ◽  
The Impact ◽  
Control Of Corruption ◽  
Ssa Countries

Purpose – This study aims to investigate the impact of governance indices (especially control of corruption) on economic growth in some selected Sub-Sahara African (SSA) countries with a view to making policy recommendations. Specifically, the study attempts to assess whether either governance reforms (especially those relating to control of corruption) or simultaneous policy reforms could have any impact on the growth of the sample SSA countries. Design/methodology/approach – The governance indicators used in this study were drawn from the PRS Group and the Worldwide Governance Indicators for 2002-2009, while the real gross domestic product (GDP) per capita growth data were obtained from the World Bank database. The study covered 47 SSA countries, and it adopted the panel data framework, the fixed effect, the random effect and the maximum likelihood estimation techniques for the analyses. Findings – The study found that political stability and regulatory quality indicators have growth-enhancing features, as they impact on economic growth in the region significantly, while government effectiveness impacts negatively on economic growth in the region. Despite, several anti-corruption policies in the region, the impact of corruption control on economic growth is not very obvious. The study also found that simultaneous implementation of the voice and accountability and the rule of law indicators has more positive impact on economic growth in the region. Both policies are complementary, and, hence, can be pursued simultaneously. Research limitations/implications – The results suggest that reform efforts that aim at enhancing accountability, regulatory quality, political stability and the rule of law have more growth-enhancing features and, thus, should be given more priority over reform efforts that singly address the issue of control of corruption due to the endemic, systemic and ubiquitous nature of corruption in the region. Practical implications – The study suggests that reform efforts that aim at enhancing accountability, regulatory quality and rule of law have more growth-enhancing features and, therefore, should be given more priority. Originality/value – Many previous studies attempted to examine the impact of corruption on economies, but this paper tries to assess the effect of corruption control and other governance indices on economic growth in the most vulnerable region of the world, the SSA. Besides, the study adopts the panel data framework which makes it possible to allow for differences in the form of unobservable individual country effects.

Innovation and institutions’ quality: a comparative study between countries

2020 ◽  
Vol 12 (2) ◽  
pp. 169-185
Author(s):  
Marcelo Koji Kawabata ◽  
Alceu Salles Camargo Junior
Keyword(s):  
Foreign Direct Investments ◽  
Content Type ◽  
Government Effectiveness ◽  
Business Environments ◽  
Innovation Activities ◽  
Regulatory Quality ◽  
The World Bank ◽  
Global Innovation ◽  
The Relationship

Purpose Innovation has been considered as an essential activity for companies to compete in modern and dynamic business environments. For the nations, innovation is considered a fundamental key activity for sustaining economic growth and competitive advantage over other countries. This paper aims to achieve a better understanding of the relationship between the quality of a country’s institutions and its levels of innovation activities and results. Design/methodology/approach Controlling for the effects of the efforts and investments in research and development (R&D) and the foreign direct investments (FDI), this work proceeds to regression analysis to obtain the association between the quality of countries’ institutions and their innovation activities. Data was obtained from the Global Innovation Index (GII) for innovation activities and the Worldwide Governance Index, of the World Bank, for the quality of institutions for 127 countries. Findings The results show that the effectiveness of public administration and the regulatory quality are the quality of institution variables associated with the innovation activities. Also, this paper obtained a clustering of countries with a rank regarding not only innovation activities but also the conditions of the institutions’ quality, based on government effectiveness, regulatory quality, R&D, FDI and GII. This new compounded classification divided the 127 countries into three clusters – mature innovators, fresh innovators and structuring for innovation. Originality/value New forms of innovations’ ranking viewing can help to understand the conditionings that enhance countries’ and institutions’ competitiveness.

The globalized state: Measuring and monitoring governance

2010 ◽  
Vol 13 (4) ◽  
pp. 511-530 ◽  
Author(s):  
Bogdan Buduru ◽  
Leslie A. Pal
Keyword(s):  
Public Administration ◽  
Transparency International ◽  
International Agencies ◽  
Governance Indicators ◽  
The World Bank ◽  
The World ◽  
Quality Of Governance ◽  
Powerful Mechanism ◽  
Freedom House

In the last 20 years, there has been an explosion of ‘governance indicators’ purporting to measure and track the quality of governance (especially public administration) among states. These indicators are sponsored by international agencies such as the World Bank, NGOs such as Transparency International and Freedom House, and private sector risk assessors. We argue that this web of standards marks a distinctive feature of globalized, if loose, coordination among states and an increase in monitoring and auditing functions. The article reviews the major governance indicators, their characteristics and limitations. We conclude that these indicators are a little noticed, but supremely powerful mechanism of discordant control and discipline on state systems around the world.

scholarly journals How the Legal Environment Affects the Structure of Employment

2015 ◽  
Vol 63 (6) ◽  
pp. 2005-2009 ◽  
Author(s):  
Marek Litzman ◽  
Luděk Kouba
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
World Bank ◽  
Institutional Environment ◽  
Legal Environment ◽  
Transparency International ◽  
Doing Business ◽  
The World Bank ◽  
Corruption Perception

The quality of the institutional environment is considered a crucial determinant of economic growth. Low quality of the formal institutional environment can slow down economic development via various mechanisms described in the literature. The present paper will analyse formal institutional factors leading to the structure of employment that Murphy, Shleifer and Vishny (The Quarterly Journal of Economics, 1991) found to be associated with lower rate of economic growth. They assumed that a high proportion of lawyers in the country may be associated with slower economic development. Thus, the aim of the paper is to examine some of the parameters of institutional environment that can lead to such a distribution. Results show that quality of law measured by the World Bank (Doing Business database) and the Corruption Perception Index obtained from Transparency International may have some explanatory abilities regarding the structure of employment.

scholarly journals Rule of Law, Corruption Control, Governance, and Economic Growth in Managing Renewable and Nonrenewable Energy Consumption in South Asia

2021 ◽  
Vol 18 (20) ◽  
pp. 10637
Author(s):  
Haider Mahmood ◽  
Muhammad Tanveer ◽  
Maham Furqan
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Rule Of Law ◽  
Political Stability ◽  
Energy Sources ◽  
The Rule Of Law ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
Nonrenewable Energy

Strong governance is vital for developing environmental policies to promote renewable energy consumption and discourage nonrenewable energy sources. The present research explores the effect of economic growth and different governance indicators on renewable and nonrenewable energy consumption in Pakistan, India, Bangladesh, and Sri Lanka using data from 1996 to 2019. For this purpose, the study uses different econometric techniques to find the long-term effects of the rule of law, regulatory quality, corruption control, government effectiveness, political stability, voice and accountability, and economic growth on oil, natural gas, coal, hydroelectricity, and renewable energy consumption. The results show that economic growth has a positive impact on all investigated renewable and nonrenewable energy sources. Additionally, regulatory quality measures also increase all types of renewable and nonrenewable energy consumption. Except for natural gas, the impact of the rule of law is negative, and government effectiveness positively affects all energy sources. Control of corruption has a positive effect on natural gas consumption. Political stability has a negative effect on nonrenewable energy sources and a positive impact on renewable energy sources. The magnitudes of the effects of economic growth and most governance indicators are found to be larger on nonrenewable sources than renewable sources. The testing of the energy consumption and governance nexus is scant in global literature and is missing in South Asian literature. Hence, the study results contribute to how South Asian economies can be more sustainable in energy use by enhancing governance indicators in the economies. Particularly, the results imply that these countries should focus on improving the rule of law, corruption control, governance, regulatory quality, political stability, and economic growth to help maintain a sustainable balance of renewable and nonrenewable energy sources. Moreover, this issue needs further attention in developing countries, as governance indicators would play an effective role in promoting sustainable energy.

scholarly journals Institution, Financial Sector, and Economic Growth: Use The Institutions As An Instrument Variable

2016 ◽  
Vol 17 (1) ◽  
pp. 84
Author(s):  
Albertus Girik Allo
Keyword(s):  
Economic Growth ◽  
Estimation Method ◽  
Political Stability ◽  
Financial Sector ◽  
Data Set ◽  
Institutional Variables ◽  
The World Bank ◽  
Control Of Corruption

Institution has been investigated having indirect role on economic growth. This paper aims to evaluate whether the quality of institution matters for economic growth. By applying institution as instrumental variable at Foreign Direct Investment (FDI), quality of institution significantly influence economic growth. This study applies two set of data period, namely 1985-2013 and 2000-2013, available online in the World Bank (WB). The first data set, 1985-2013 is used to estimate the role of financial sector on economic growth, focuses on 67 countries. The second data set, 2000-2013 determine the role of institution on financial sector and economic growth by applying 2SLS estimation method. We define institutional variables as set of indicators: Control of Corruption, Political Stability and Absence of Violence, and Voice and Accountability provide declining impact of FDI to economic growth.

scholarly journals Performance of Agricultural Export Products on Economic Growth in Nigeria

2021 ◽  
Vol 11 (1) ◽  
pp. 47-52
Author(s):  
Oyetoun Dunmola Amao ◽  
Michael Akwasi Antwi ◽  
Oluwaseun Samuel Oduniyi ◽  
Timothy Olukunle Oni ◽  
Theresa Tendai Rubhara
Keyword(s):  
Economic Growth ◽  
Agricultural Sector ◽  
Generalized Method Of Moments ◽  
Secondary Data ◽  
National Bureau ◽  
Agricultural Export ◽  
Development Indicators ◽  
Agricultural Exports ◽  
The World Bank

This research sought to explore the performance of agricultural export products on economic growth in Nigeria from 1960 to 2016. Secondary data from the National Bureau of Statistics, the Central Bank of Nigeria’s Annual Statistical Bulleting, the World Bank, and World Development Indicators were used. The Generalized Method of Moments (GMM) model was explored in this study. The findings of the study show that food and live animals, beverages, and tobacco were found to be negative but significant to agricultural exports, while agricultural exports (total) and crude materials, inedible except fats, were found to be negative and insignificant to economic growth. Animal and vegetable oils and fats were found to be positive but insignificant to economic growth. Based on the following findings, it is recommended that policies aimed at increasing the productivity and quality of agricultural products, especially those from crops, should be implemented. There is also a need to devote more resources to the production of non-export goods to increase exports. Above all, more credit should be extended to the agricultural sector with a low or zero interest rate, which may lead to a higher rate of economic growth in Nigeria.

scholarly journals Causality between Chinese investment in Latin America and the governance indicators

2019 ◽  
Vol 21 (1) ◽  
pp. 6-17
Author(s):  
L. Arturo Bernal Ponce ◽  
Ricardo Pérez Navarro ◽  
Mauricio Ramírez Grajeda
Keyword(s):  
Latin American ◽  
Panel Data Analysis ◽  
Private Investment ◽  
Outward Fdi ◽  
Chinese Investment ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
Indicator Variables

This article analyzes the causal relationship between China’s outward foreign direct investment (FDI) and several governance indicators by performing a panel data analysis for Latin American countries. First, a long-term relationship was found between China’s outward FDI and three governance indicator variables: control of corruption (CC), regulatory quality (QR), and government effectiveness (GE). This result supports the idea that there is a statistical relationship between FDI and the governance indicators. We also found evidence of causality from FDI to CC, implying that after Chinese investment there is a change in the host country’s perception of corruption. In addition, causality from QR and GE to FDI was found. The result is evidence of how outward FDI effects the host country government’s ability to implement policies and regulations which promote private investment and the quality of public services.

scholarly journals Institutional complementarity for social and economic development

2019 ◽  
Vol 20 ◽  
pp. 103-115 ◽  
Author(s):  
Yuriy Bilan ◽  
Tetyana Vasilyeva ◽  
Serhiy Lyeonov ◽  
Kseniya Bagmet
Keyword(s):  
Economic Development ◽  
Institutional Quality ◽  
Social Sector ◽  
Social Rules ◽  
Institutional Complementarity ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
The Social ◽  
The Impact

oday the prevention of global challenges (from global security to the problems of poverty) relates to the institutional quality. Nowadays, the social standards or other “social rules” make the part of the market system, since they are built into the country’s institutional structure. Neither social nor economic reforms can be implemented without the support through institutional mechanisms. The purpose of this paper is to explore the relationship between social sector institutions and basic institutions, taking into account the economic development of countries and the way in which they are formed. A number of empiric studies confirmed significant role of institutions to provide conditions for economic development. In order to define and assess the link between the basic institutions and the social sector institutions, we formed panel data that includes 20 countries for the period from 2007-2014. We assessed quality of the basic institutions using The Worldwide Governance Indicators (WGI). WGI methodology provides an evaluation of six dimensions of the institutional quality that enables to define the connection and the impact of every dimension on the institutional quality of the social sector. The model additionally evaluates the impact of the incomes distribution inequality, general economic welfare on the institutional quality of the social sector. Among all dimensions of governance “Rule of Law” and “Regulatory Quality” the statistically significant direct impact on the institutional quality of the social sector has been revealed. It confirms the complementarity of basic institutions and institutions of the social sector.

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