scholarly journals Institutional Quality and Sukuk Development: A Study of Five OIC Countries

2020 ◽  
Vol 5 (3) ◽  
pp. 286
Author(s):  
Nuhbatul Basyariah ◽  
Hadri Kusuma ◽  
Ibnu Qizam
Keyword(s):  
United Arab Emirates ◽  
Rule Of Law ◽  
Institutional Quality ◽  
Three Dimensions ◽  
Method Of Moment ◽  
Government Effectiveness ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
Panel Data Regression ◽  
Data Regression

The objective of this study is to shed some light on the effect of institutional quality on the development of the global sukuk market. Specifically, this study examines the impacts of the institutional quality that adopts three dimensions of the Worldwide Governance Indicators (WGI), i.e., Rule of Law (RL), Regulatory Quality (RQ), and Government effectiveness (GE) on the global sukuk development of the top-five countries of sukuk issuance, i.e., Malaysia, Kingdom of Saudi Arabia, United Arab Emirates, Indonesia, and Bahrain. Drawing on a quantitative study with the data in the forms of global sukuk issuance from 2002 to 2017, panel-data regression (OLS) and General Method of Moment (GMM) were applied. This study showed that RL and GE have a significantly positive effect on sukuk issuance; however, RQ did not influence the development of the global sukuk market. These results imply that a country that is capable to maintain the institutional quality, especially in terms of rule of law and government effectiveness, will most likely be the country that can successfully develop the sukuk market. These results play a crucial role in filling a research gap among previous studies and provide an empirical evidence of the government’s role and its influence on the sukuk development.

scholarly journals Governance and Human Development: The Impacts of Governance Indicators on Human Development

2018 ◽  
Vol 8 (1) ◽  
pp. 26
Author(s):  
Ahmet Keser ◽  
Yunus Gökmen
Keyword(s):  
Panel Data ◽  
Human Development ◽  
Annual Data ◽  
Government Effectiveness ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
Panel Data Regression ◽  
Data Regression ◽  
Positive Coefficients ◽  
Nations Development

Throughout the article, the relation between the governance indicators and the Human Development Level (HDL) is investigated. The analysis is conducted by using Panel Data Regression Method. The valid annual data of World Governance Index between the years 2002–2012 for 33 member and candidate countries of European Union (EU) is collected from World Bank’s official website. To measure HDL, data of Human Development Index (HDI) belonging to 2002-2012 term is gathered from United Nations Development Programme’s official website. The analysis concluded that, at least three of the governance indicators as Government Effectiveness, Regulatory Quality and Rule of Law have significant positive coefficients in the panel data regression model. It means that better governance performance for any country provides better performance at the HDL. It is evaluated that the results of the research may provide useful instrument both for public policy designers and for academics.

scholarly journals Stay at Home! Governance Quality and Effectiveness of Lockdown

2021 ◽  
Author(s):  
Vincenzo Alfano ◽  
Salvatore Ercolano
Keyword(s):  
Rule Of Law ◽  
Global Scale ◽  
Considerable Time ◽  
Government Effectiveness ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
Governance Quality ◽  
World Governance Indicators ◽  
Set Up ◽  
First Time

AbstractIn order to control the spread of the COVID-19 pandemic, during the first wave of the pandemic numerous countries decided to adopt lockdown policies. It had been a considerable time since such measures were last introduced, and the first time that they were implemented on such a global scale in a contemporary, information intensive society. The effectiveness of such measures may depend on how citizens perceive the capacity of government to set up and implement sound policies. Indeed, lockdown and confinement policies in general are binding measures that people are not used to, and which raise serious concerns among the population. For this reason governance quality could affect the perception of the benefits related to the government’s choice to impose lockdown, making citizens more inclined to accept it and restrict their movements. In the present paper we empirically investigate the relation between the efficacy of lockdown and governance quality (measured through World Governance Indicators). Our results suggest that countries with higher levels of government effectiveness, rule of law and regulatory quality reach better results in adopting lockdown measures.

scholarly journals Does Higher Religiosity Translate into Higher Institutional Quality? Evidence From 98 Countries

SAGE Open ◽  
2019 ◽  
Vol 9 (3) ◽  
pp. 215824401986580
Author(s):  
Ayse Y. Evrensel ◽  
Itai Sened
Keyword(s):  
Rule Of Law ◽  
Institutional Quality ◽  
World Values Survey ◽  
Government Effectiveness ◽  
The Rule Of Law ◽  
Country Level ◽  
Regulatory Quality ◽  
Moral Standards ◽  
Corrupt Behavior ◽  
Government Benefits

This article examines whether individuals’ higher moral values stemming from higher religiosity lead to higher institutional quality at the country level. Based on the data from World Values Survey (WVS, 1980-2014) with 343,440 respondents, the results indicate that higher religiosity is associated with lower justifiability of corrupt behavior such as cheating on taxes, receiving false government benefits, and taking bribes. However, at the level of 98 countries from which the respondents in the WVS stem, higher religiosity seems to have an adverse effect on institutional quality as measured in corruption control, executive constraints, government effectiveness, regulatory quality, and the rule of law. Therefore, higher religiosity and moral standards at the respondent level may not translate into higher institutional quality at the country level. We discuss possible reasons for this discrepancy.

scholarly journals The Governance and Tourism: A Case of Developing Countries

2021 ◽  
Vol 9 (3) ◽  
pp. 199-213
Author(s):  
Rana Ejaz Ali Khan ◽  
Tusawar Iftikhar Ahmad ◽  
Jaweria Haleem
Keyword(s):  
Rule Of Law ◽  
Good Governance ◽  
Developing Economies ◽  
Trade Openness ◽  
Tourism Development ◽  
Political Stability ◽  
Method Of Moment ◽  
Total Employment ◽  
Government Effectiveness ◽  
Regulatory Quality

Tourism is a rapidly growing industry globally and it is contributing a significant part in the GDP of the economies. In the literature, a variety of determinants of tourism are discussed theoretically and empirically but the effect of national governance on tourism is rarely discussed. This study investigates the effect of governance on tourism development in a panel of 65 developing economies for the time period of 2000-2015. Tourism development is measured by an index of three components, i.e. spending by international tourists, spending by local tourists and tourism’s share in total employment in the economy. For governance an index is constructed based on indicators of government effectiveness, political stability, regulatory quality, rule of law, and voice and accountability. Data has been taken from World Development Indicators (WDI), Worldwide Governance Indicators (WGI) and World Travel and Tourism Council (WTTC). Generalized Method of Moment (GMM) estimation indicates that governance positively influence tourism development and its components, i.e. foreign visitors spending, domestic tourist spending and contribution of tourism in employment. The indicators of governance, i.e. government effectiveness, political stability, regulatory quality, rule of law and voice and accountability also positively affect tourism development. Terrorism, environmental degradation and corruption have shown adverse effect on tourism development as well as components of tourism development. The economic growth and trade openness have encouraging effect on tourism development and its comments. It is concluded that through good governance tourism may be developed but terrorism and corruption are needed to be eliminated.

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 Are performances in Governance Indicators Complementary to Corruption Abatement?

2015 ◽  
Vol 4 (3) ◽  
pp. 1-10
Author(s):  
Kamal Ray ◽  
Ramesh Das
Keyword(s):  
World Bank ◽  
Rule Of Law ◽  
Global Economy ◽  
Causal Link ◽  
Causality Test ◽  
Government Effectiveness ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
Corruption Perception ◽  
Control Of Corruption

Private use of public office for private gain could be a tentative connotation of corruption and most distasteful event of corruption is that it is not there, nor that it is pervasive, but it is socially acknowledged in the global economy, especially in the developing nations. In the present paper we attempt to assess the interrelationship between the Corruption perception index (CPI) and the principal components of governance indicators as per World Bank Governance Indicators like Control of Corruption (CC), Rule of Law (RL), Regulatory Quality (RQ) and Government Effectiveness (GE). Applying Granger Causality Test the study observes a mixed or inconclusive result. Only bilateral causal link between the CPI and CC works for UK, whereas there are unilateral causal links between the CPI and one or more governance indicators working for other countries for France, Japan, China, India, Thailand and South Africa. In no way causalities are observed for USA, Germany and Brazil.

scholarly journals The Non-Linear Relation between Governance and Efficiency: Evidence from Agriculture

2017 ◽  
Vol 5 (11) ◽  
pp. 1334
Author(s):  
Nizamettin Bayyurt ◽  
Zehra Vildan Serin
Keyword(s):  
Good Governance ◽  
Political Stability ◽  
Developed Countries ◽  
Data Envelopment ◽  
Governance Indicators ◽  
Agricultural Performance ◽  
Regulatory Quality ◽  
Panel Data Regression ◽  
Data Regression ◽  
Highly Correlated

This study aims to explore the relations between governance and agricultural performance of countries. Data Envelopment Analysis was used to find out agricultural performance of 81 countries at first stage. Panel data regression was employed in the second stage to assess the relations between performance levels of countries and their governance. Six governance indicators namely; voice and accountability, control of corruption, government effectiveness, regulatory quality, rule of law and political stability and violence were analyzed in this stage. Findings show that firstly, governance indicators are highly correlated with each other. Secondly, developed countries are more efficient and have better governance than developing and undeveloped countries. Finally, a quadratic form of regression was the fitting model that is the marginal effects of good governance on performance are increasing in high values of governance.

scholarly journals The Effect of Institutional Quality on Bank Lending in the Gulf Cooperation Council Countries

2016 ◽  
Vol 12 (1) ◽  
Author(s):  
Azmat Gani ◽  
Saeed Al-Muharrami
Keyword(s):  
Rule Of Law ◽  
Institutional Quality ◽  
Bank Lending ◽  
Gulf Cooperation Council ◽  
Regression Equation ◽  
Reduced Form ◽  
Government Effectiveness ◽  
The Rule Of Law ◽  
Regulatory Quality ◽  
Cross Country

AbstractThis paper examines the effect of institutional quality on lending by banks in Gulf Cooperation Council (GCC) group of countries. The methodology included the estimation of a reduced form regression equation utilizing cross country data for a range of variables capturing institutional quality. The empirical findings provide evidence that conventional institutional quality measured by: the time taken to enforce a contract, regulatory quality, the rule of law and government effectiveness; are inversely correlated with the lending by the banks, among other factors. Interestingly, our findings revealed that

Applying Synthetic Control Method to Estimate the Impact of the Lava Jato Operation on the Worldwide Governance Indicators in Brazil

2021 ◽  
pp. 2631309X2110178
Author(s):  
Eduardo Carvalho Nepomuceno Alencar ◽  
Bryant Jackson-Green
Keyword(s):  
Rule Of Law ◽  
Control Method ◽  
Synthetic Control ◽  
Synthetic Control Method ◽  
The Rule Of Law ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
Legal Judgments ◽  
The Impact ◽  
Control Of Corruption

In 2014, the most prominent anti-corruption investigation in Latin America called Lava Jato, exposed a Brazilian corruption scheme with reverberations in 61 countries, resulting in legal judgments for nearly 5 billion USD in reimbursements thus far. This article applies the synthetic control method on data from 135 countries (2002–2018) to test the hypothesis that Lava Jato impacts the Worldwide Governance Indicators in Brazil. The findings reveal that Lava Jato negatively affects control of corruption, the rule of law, and regulatory quality. There are signs of possible improvement in at least the corruption and the rule of law measures. This paper brings value to the criminological body of literature, notably lacking in the Global South.

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