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 Mapping the Moderating Role of Logistics Performance of Logistics Infrastructure on Economic Growth in Developing Countries

Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 177
Author(s):  
Zunaira Khadim ◽  
Irem Batool ◽  
Ahsan Akbar ◽  
Petra Poulova ◽  
Minahs Akbar
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
World Bank ◽  
Developing Economies ◽  
Data Set ◽  
The World Bank ◽  
Efficient Performance ◽  
Moderator Role ◽  
Moderating Role

Logistics performance is an important determinant of economic growth. The present study investigates the moderating role of logistics performance of the logistic infrastructure on economic growth in developing countries. We employ the World Bank computed LPI index in the year 2010, 2012, 2014, 2016 and 2018 to measure the logistic performance. The current research includes the 50 developing economies, and a panel data set comprising of total 300 observations is collected. The study used the conventional Cobb–Douglas production function with labor, capital stock as main drivers of economic growth. The study found that the labor and capital endowments have significantly different impacts in terms of elasticity coefficients for developing countries with different logistics performance levels. It implies that logistics performance, i.e., the efficient performance of logistic infrastructure, plays a moderator role in economic growth in developing economies.

scholarly journals THE ALGERIAN ECONOMY GOVERNED BY BLACK CORRUPTION: AN EMPIRICAL STUDY FROM 2002 TO 2015

2016 ◽  
Author(s):  
Sissani Midoun
Keyword(s):  
Economic Growth ◽  
Negative Relationship ◽  
Political Stability ◽  
Multiple Regression Model ◽  
Gdp Growth Rate ◽  
Corruption Index ◽  
Cumulative Knowledge ◽  
Free Media

The main objective of this paper is to highlight the concept of corruption and analyses our cumulative knowledge about corruption’s effects on the economic growth in Algeria during the period 2002–2015. This article emphasizes the major source of corruption and how the quality of institutions and government policies could mitigate the risk of corruption or increase it. The findings also show the great role of free media in most developing countries which created a new tendency to talk about the effects of corruption especially in recent years. Using a multiple regression model, we find that a 1% decrease in the corruption index CPI level increases the GDP growth rate by approximately 2,005%. The analysis also revealed that there is a negative relationship between the country rank and the economic growth. Finally, the results suggest that more economic freedom, social and political stability lead to less corruption.

scholarly journals Good Governance and Economic Growth in South European Countries

2021 ◽  
Vol 13 (2) ◽  
pp. 26
Author(s):  
Dimitra Mitsi
Keyword(s):  
Economic Growth ◽  
Rule Of Law ◽  
Good Governance ◽  
Trade Openness ◽  
Political Stability ◽  
Foreign Direct Investments ◽  
Institutional Variables ◽  
Regulatory Quality ◽  
Many Sources

Economic growth is a prerequisite for economic development. However, there is no “recipe” for countries to create an environment of prosperity and to achieve high rates of economic growth. Many researchers have examined the drivers of economic growth and find that economic growth depends on many economic and institutional variables. In this context, the main objective of this paper is to examine the role of good governance on economic growth in piicgs countries (Portugal, Ireland, Italy, Cyprus, Greece, and Spain). The database was collected from many sources and the empirical analysis is based on a 2SLS (two-stage least squares) technique. In our empirical results, we find that trade openness, gross capital formation, inflation, political stability, rule of law, debt rule, budget balanced rule, and the combination between debt rule/budget balanced rule with political stability and combination between debt rule/budget balanced rule with rule of law are significant drivers of economic growth in piicgs countries while foreign direct investments, government effectiveness, voice and accountability, regulatory quality, fiscal rule index and expenditure rule are insignificant. However, the results may be different if we use other sample groups and/or different periods.

Economic Growth: New Problems and New Risks

2006 ◽  
pp. 20-37 ◽  
Author(s):  
M. Ershov
Keyword(s):  
Economic Growth ◽  
Foreign Exchange ◽  
Driving Force ◽  
Structural Changes ◽  
Rate Of Growth

The economic growth, which is underway in Russia, raises new questions to be addressed. How to improve the quality of growth, increasing the role of new competitive sectors and transforming them into the driving force of growth? How can progressive structural changes be implemented without hampering the rate of growth in general? What are the main external and internal risks, which may undermine positive trends of development? The author looks upon financial, monetary and foreign exchange aspects of the problem and comes up with some suggestions on how to make growth more competitive and sustainable.

Determinants of regional and local development – their impact on socio-economic space

2019 ◽  
pp. 3-9
Author(s):  
Krzysztof Rejman ◽  
Roman Fedan
Keyword(s):  
Economic Growth ◽  
Local Development ◽  
Local Level ◽  
Local Policy ◽  
Economic Changes ◽  
Production Factors ◽  
Rational Planning ◽  
Local Resource Management

Processes of the expected spatial socio-economic changes arise as a result of rational planning and continuation of development at regional and local level. A three-tier division ofthe local self-government creates opportunities for engagement of community in the rational planning model and local resource management, as well as usage of production factors; for socio-economic growth and improvement in the quality of life of the residents. The aim of the article is to show the functional structure and role of local government units in formation of regional and local policy toincrease economic growth, while maintaining the environmental protection requirements.

Institutional Quality and Trade Flow: Empirical Evidence from Malaysia and Other OIC Member Countries in Africa

2021 ◽  
pp. 097508782098717
Author(s):  
Hammed Agboola Yusuf ◽  
Luqman Olanrewaju Afolabi ◽  
Waliu Olawale Shittu ◽  
Kafilah Lola Gold ◽  
Murtala Muhammad
Keyword(s):  
Economic Growth ◽  
Bilateral Trade ◽  
Trade Flow ◽  
Estimation Method ◽  
Institutional Quality ◽  
Likelihood Estimation ◽  
Political Stability ◽  
Bilateral Trade Flow ◽  
World Governance Indicators ◽  
The Impact

This article examines the impact of institutional quality on bilateral trade flow between Malaysia and selected 25 African Organisation of Islamic Cooperation (OIC) member countries. Four institutional qualities were selected from World Governance Indicators with other trade predictors from the period from 1985 to 2016. Using gravity model of trade and Poisson pseudo-maximum likelihood estimation method (PPML) technique, the results confirm that government effectiveness, regulatory quality and political stability have an adverse effect on bilateral trade flow among the OIC countries in Africa. On the other hand, these institutional quality variables were considered as a strength for Malaysian economic growth. Therefore, better institutional quality reforms are needed among OIC member countries in Africa in order to accelerate trade, economic growth and development in their region.

scholarly journals Political Stability and Security Status

2019 ◽  
Vol 3 (1) ◽  
pp. 11-13
Author(s):  
Ribaz Chato Biro
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Direct Investment ◽  
Political Stability ◽  
Kurdistan Region ◽  
Economic Sectors ◽  
Autonomous Region ◽  
Economic Progress ◽  
New Destination

Political stability and security have become important factors of sustainable economic progress for the developing countries, especially states with the experience of war and instability. Kurdistan Region of Iraq (KRI) as a semi-autonomous region tried to improve the level of political stability and security status, to gain more foreign direct investment (FDI) and economic growth. Consequently, KRI has become the safest region in Iraq and enjoyed political stability and safety. Therefore, during the last decade, KRI has occurred as a new destination of FDI in the Middle East and has received notable progress in most of the economic sectors. The aim of this study is to evaluate the role of political stability and security status on the FDI attractions and their consequences on economic development. However, it will investigate the factors that make the KRI safer than the rest of Iraq.

scholarly journals Financial system and growth and economic development

VUZF Review ◽  
2021 ◽  
Vol 6 (2) ◽  
pp. 160-170
Author(s):  
Małgorzata Hala
Keyword(s):  
Economic Growth ◽  
Economic System ◽  
Financial Institutions ◽  
Financial System ◽  
Financial Sector ◽  
Real Sector ◽  
The Real ◽  
State And Local ◽  
The Impact

The aim of the article is to present the role of the financial system in economic growth and development. The first part presents the traditional understanding of the relationship between the economic system and economic growth. The second part presents the experience of financial crises and their impact on the conversation on the mutual relations between the financial sector and the real sector. The third part shows the role of the state in the financial system. The article describes the arrangement of interrelated financial institutions, financial markets and elements of the financial system infrastructure.  It shows what part of the economic system the financial system is, and whether it enables the provision of services allowing the circulation of purchasing power throughout the economy. The article presents the important role of the financial system, the role related to the transfer of capital from entities with savings to entities that need capital for investments. It shows the financial system as a set of logically related organizational forms, legal acts, financial institutions and other elements enabling entities to establish financial relations in the real sector and the financial sector, and this system forms the basis of activity for entities using money, enabling the conclusion of various economic transactions, in which money performs various functions. The article also presents the concept of a financial crisis as a situation in which there are rapid changes in the financial market, usually associated with insufficient liquidity or insolvency of banks or financial institutions, and as a result, a decrease in production or its deepening. The article also includes issues related to the impact of public authorities (state and local authorities) on the financial system in the economy.

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 Role of Financial Sector Development as a Contingent Factor in the Remittances and Growth Nexus: A Panel Study of Pacific Island Countries

2018 ◽  
Vol 3 (1) ◽  
pp. 51-74 ◽  
Author(s):  
Tiru K. Jayaraman ◽  
Lin Sea Lau ◽  
Cheong Fatt Ng
Keyword(s):  
Economic Growth ◽  
Technical Assistance ◽  
Panel Study ◽  
Financial Sector ◽  
Institution Building ◽  
Pacific Island ◽  
Domestic Investment ◽  
Financial Sector Development ◽  
Pacific Island Countries

Except for emergencies and for technical assistance for raising skills and institution building, foreign aid to Pacific island countries (PICs) for budgetary support has been phased out since the late 1990s. Because of the small sized domestic markets, foreign direct investment (FDI) is small and is confined to development of tourism infrastructure. On the other hand, inward remittances received from the rising number of islanders migrating overseas for work are increasing, far exceeding aid and FDI. However, influence of remittances on economic growth depends on financial sector development (FSD) for mobilizing the savings from the remittance receipts for domestic investment. This paper assesses the role of FSD in the nexus between remittances and economic growth through a panel study of five major PICs, namely Fiji, Samoa, Solomon Islands, Tonga and Vanuatu.  The study findings show that the ongoing efforts for strengthening FSD have to be stepped up by focusing on financial inclusion through spread of branchless banking and promotion of  information and communication technology.

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