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 Institutional Analysis of Shadow Economy (Study on ASEAN 7 Developing Countries)

2020 ◽  
Vol 15 (1) ◽  
pp. 55
Author(s):  
Ana Rahmawati Wibowo ◽  
Wiwin Indrayanti
Keyword(s):  
Developing Countries ◽  
Rule Of Law ◽  
Shadow Economy ◽  
Secondary Data ◽  
Political Stability ◽  
Government Effectiveness ◽  
Regulatory Quality ◽  
Negative Effect ◽  
And Control ◽  
Control Of Corruption

This study aims to analyze the institutional variables of governance in ASEAN 7 developing countries. The independent variables consist of Voice and Accountability, Political Stability and Absence of Violence, Government Effectiveness, Regulatory Quality, Rule of Law and Control of Corruption, while shadow economy is dependent variable. The data used in this study are quantitative data and secondary data by using program Stata 14, the analysis technique used is multiple linear regression panel data. The results show that Voice and accountability has a negative and significant effect on the shadow economy as well as Political stability, Government effectiveness and Control of corruption on the other side. Regulatory quality has a positive and significant effect on the amount of shadow economy. Meanwhile, Rule of law no significant effect on the shadow economy. Underlying the results, the study arranges some policy to reduce negative effect of shadow economy.

scholarly journals Assessing the impact of institutions on economic growth in the BRICS countries

2021 ◽  
Vol 2 (4) ◽  
pp. 30-46
Author(s):  
Ayushi Tiwari ◽  
Tridisha Bharadwaj
Keyword(s):  
Economic Growth ◽  
Institutional Quality ◽  
Political Stability ◽  
Physical Capital ◽  
Government Effectiveness ◽  
Brics Countries ◽  
Regulatory Quality ◽  
And Control ◽  
The Impact ◽  
Control Of Corruption

This study examines the impact of institutional quality on economic performance in the BRICS countries for the period from 2002 to 2019. The panel data study was estimated using pooled OLS and a fixed effect model. The study employed six institutional quality indicators (Worldwide Governance Indicators) which included voice and accountability, political stability and absence of violence/terrorism, government effectiveness, regulatory quality, rule of law, and control of corruption. The study also controlled for conventional sources of growth, i.e. human capital, physical capital, government expenditure, and inflation. All of these factors were positive and significant in our study. The findings also reveal that government effectiveness, regulatory quality and control of corruption had a positive and significant impact on economic growth in the BRICS countries, whereas other institutional variables turned out to be insignificant.

scholarly journals PENGARUH ELEMEN GOOD GOVERNANCE TERHADAP TINGKAT KORUPSI DI ASIA TENGGARA

2020 ◽  
Vol 25 (1) ◽  
pp. 96-114
Author(s):  
Dinda Ayu Dizrisa ◽  
Sudrajat Sudrajat ◽  
Niken Kusumawardani
Keyword(s):  
Rule Of Law ◽  
Good Governance ◽  
Linear Regression Analysis ◽  
Political Stability ◽  
Multiple Linear Regression Analysis ◽  
Economic Problem ◽  
Regulatory Quality ◽  
The Government ◽  
And Control ◽  
Control Of Corruption

Corruption is a complex social, political and economic problem and occurs in every country with different levels. Corruption will complicate democracy and governance of a country. To overcome the problem of corruption, the government must implement good governance. This study aims to provide empirical evidence regarding the effect of elements of good governance on the level of corruption in Southeast Asia. Good governance variables are presented by six variables: voice and accountability, political stability and absence of violence / terrorism, government effectiveness, regulatory quality, rule of law and control of corruption. Meanwhile, the level of corruption is measured using the Corruption Perceptions Index (CPI). The research sample was selected using the purposive sampling method and produced a sample of 8 countries and the observation period was carried out in 2009-2018 or as many as 10 years, so the number of samples in this study were 80 samples. Corruption level data used in this study uses the Corruption Perceptions Index (Transparency International), while the good governance data used in this study uses the Worldwide Governance Indicators (World Bank). The research methodology used in this study is multiple linear regression analysis with the IBM SPSS Statistics 24 program. The results showed that the variable voice and accountability, political stability and absence of violence / terrorism, and rule of law had no effect on the level of corruption, whereas the government variable effectiveness, regulatory quality, and control of corruption affect the level of corruption.

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 Institutional Quality and Industrial Growth: A Causality Analysis

2021 ◽  
pp. 34-45
Author(s):  
A. O. B. Babasanya ◽  
O. A. Adelowokan ◽  
F. F. Oyebamiji
Keyword(s):  
Causal Effect ◽  
Institutional Quality ◽  
Political Stability ◽  
Output Growth ◽  
Financial Deepening ◽  
Industrial Output ◽  
Industrial Growth ◽  
Government Effectiveness ◽  
Regulatory Quality ◽  
Control Of Corruption

The research study investigates the causal links between institutional quality and industrial output growth in Nigeria for the periods 1996:Q1-2018:Q4. Institutional quality was delineated into three i.e. economic institution (government effectiveness, regulatory quality, rule of law, and control of corruption), financial institution (contract intensive money, lending rate, and financial deepening), and political institution (voice and accountability, and political stability and absence of violence). The study computed the Granger causality test using both the VECM and the Toda and Yamamoto [1] and Dolado and Lutkepohl [2] (TYDL) augmented VAR procedure. The causality result in the short run showed that none of the institutional quality variables have a causal effect on industrial output growth but the feedback was reported. In the long run, a bi-causal relationship was reported from government effectiveness, control of corruption, financial deepening, and voice and accountability to industrial growth, whereas, a one-way directional relation was found running from industrial growth to regulatory quality and political stability & absence of violence. Thus, there is a need for the government to intensify efforts towards improving the extent people can challenge her power and authority because these play significant roles in the development level of Nigerian industries.

scholarly journals Pengaruh Kualitas Institusi, Pengeluaran Pemerintah, dan Foreign Direct Investment terhadap Pertumbuhan Ekonomi

2021 ◽  
Vol 4 (2) ◽  
pp. 86-98
Author(s):  
Anastia Widianatasari ◽  
Evi Yulia Purwanti
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Political Stability ◽  
Government Size ◽  
Regulatory Quality ◽  
Common Effect ◽  
Effect Model ◽  
Control Of Corruption

Pertumbuhan ekonomi di negara berkembang rentan terhadap fluktuasi ekonomi global seperti krisis ekonomi 2008 dan kembali mendapat hambatan dengan terjadinya resesi akibat pandemi Covid-19. Penelitian ini memiliki dua tujuan. Pertama, menganalisis pengaruh kualitas institusi, government size, dan foreign direct investment terhadap pertumbuhan ekonomi. Kedua, menganalisis pengaruh kualitas institusi dan government size terhadap pertumbuhan ekonomi melalui FDI. Terdapat dua metode analisis yang digunakan dalam penelitian ini, yaitu regresi data panel pendekatan common effect model (CEM) dan analisis jalur. Objek yang digunakan penelitian 9 negara berkembang Asia tahun 2012-2019. Hasil penelitian menunjukkan bahwa variabel kualitas institusi yang terdiri dari voice and accountability, political stability and absence of violence/ terrorism, dan regulatory quality berpengaruh signifikan terhadap pertumbuhan ekonomi, sedangkan control of corruption tidak berpengaruh signifikan. Di samping itu, government size tidak berpengaruh signifikan terhadap pertumbuhan ekonomi, tetapi foreign direct investment berpengaruh signifikan terhadap pertumbuhan ekonomi. Lebih lanjut, secara tidak langsung semua variabel kualitas institusi tidak berpengaruh signifikan terhadap pertumbuhan ekonomi melalui FDI. Sebaliknya, government size berpengaruh signifikan terhadap pertumbuhan ekonomi melalui FDI. Pemerintah dapat melakukan reformasi regulasi, meninjau kembali alokasi pengeluaran pemerintah, dan menyaring arus masuk FDI untuk meningkatkan pertumbuhan ekonomi di negara berkembang.

scholarly journals Economic growth and institutional quality in South East Europe

2021 ◽  
Vol 69 (3-4) ◽  
pp. 1-13
Author(s):  
Jelena Minović ◽  
Vesna Aleksić ◽  
Slavica Stevanović
Keyword(s):  
Economic Growth ◽  
Rule Of Law ◽  
Growth Control ◽  
Institutional Quality ◽  
Political Stability ◽  
Government Effectiveness ◽  
The Rule Of Law ◽  
East European ◽  
South East Europe ◽  
Control Of Corruption

The paper researched the causal relationship between institutional quality measures and real gross domestic product growth (GDP) on the South East European (SEE) countries in the period 1996-2016. To achieve the aim of this research the panel techniques (the Dumitrescu-Hurlin noncausality approach) were used. The SEE suffers from very poor control of corruption, as well as significant political instability, the weak rule of law and poor government effectiveness. Our results indicate that there is unidirectional homogeneous causality between political stability and real GDP growth. Control of corruption leads to government effectiveness. The rule of law leads to control of corruption, and government effectiveness to political stability. Additionally, there is a bidirectional homogeneous causality between the rule of law and political stability. Thus, the research found some empirical evidence that stronger institutional measures cause higher economic growth.

scholarly journals Impact of Institutional Quality on Foreign Direct Investment Inflow: Evidence from Croatia

2020 ◽  
Vol 11 (1) ◽  
pp. 44-58
Author(s):  
Ljubo Jurčić ◽  
Sanja Franc ◽  
Antea Barišić
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Institutional Quality ◽  
Political Stability ◽  
Economic Cycle ◽  
Economic Determinants ◽  
Institutional Determinants ◽  
Per Capita ◽  
And Control ◽  
Determinants Of Fdi

AbstractBackground: Foreign direct investment (FDI) flows are unevenly distributed around the world and determined by different factors. The literature points out to economic and non-economic determinants of FDI flows, while the latter have shown to generate ambiguous effects across regions.Objectives: The primary goal of this paper is to examine the relationship between non-economic determinants and the FDI inflow in Croatia from 1996 to 2017, thus capturing different periods of the economic cycle. The importance of non-economic institutional determinants of FDI is analysed in parallel with the economic determinants.Methods/Approach: This study uses available data on FDI per capita and a set of non-economic (institutional) and economic determinants. We employed the OLS regression analysis to determine the significance of FDI inflow determinants and compare the relevance of non-economic to economic factors.Results: Results of this exploratory study show that institutional quality variables included in the model (regulatory quality, political stability, and government effectiveness, the rule of law and control of corruption) could not be pointed out as important determinants of the FDI inflow in Croatia. Economic variables GDP per capita and average gross wage prove to be important in determining the FDI inflow in Croatia.Conclusions: The research results point to a variety of FDI determinants among countries and economic cycle periods. Given the evidence from Croatia, variations, especially in institutional determinants, might be caused by the diverse FDI inflow characteristics and specificities of receiving economies.

scholarly journals The Relation between Public Managers’ Compensation and Governance

2018 ◽  
Vol 8 (1) ◽  
pp. 279 ◽  
Author(s):  
Mario Coccia
Keyword(s):  
Rule Of Law ◽  
Central Government ◽  
Public Institutions ◽  
Senior Managers ◽  
Government Effectiveness ◽  
Public Managers ◽  
Regulatory Quality ◽  
Vast Literature ◽  
And Control ◽  
Control Of Corruption

A vast literature in the field of public organizations has analyzed several factors of the compensation of government senior managers. However, the institutional factors associated with high levels of compensation of public managers are hardly known. In particular, studies about the possible relation between factors of governance and compensation of public managers are scarce. The statistical evidence here reveals that in the OECD countries, high levels of compensation for central government senior manager (standardized with GDP per capita) seem to be associated with low government effectiveness, low regulatory quality, low freedom, low rule of law and control of corruption (in short, bad governance). These results suggest insights for general reforms of governance aimed to support equitably levels of compensation of public managers and efficiency of public institutions.

scholarly journals Mediating role of trust in the relationship between public governance quality and tax compliance

2022 ◽  
Vol 3 (4) ◽  
pp. 11-22
Author(s):  
Yusuf Mohammed Alkali ◽  
Abdulsalam Masud ◽  
Almustapha A. Aliyu
Keyword(s):  
Rule Of Law ◽  
Tax Compliance ◽  
Political Stability ◽  
African Countries ◽  
Public Governance ◽  
Government Effectiveness ◽  
Regulatory Quality ◽  
Governance Quality ◽  
Control Of Corruption

This paper examined the mediating role of trust in government on the influence of public governance quality indicators (accountability, political stability, government effectiveness, regulatory quality, rule of law, and control of corruption) on tax compliance in Africa. Cross-country data obtained from 38 African countries for 2015 was used and analyzed using Ordinary Least Squares (OLS) regression analysis. The study found that accountability, political stability, control of corruption, and trust have a significant influence on tax compliance among the sampled African countries, but government effectiveness, regulatory quality, and the rule of law and have insignificant influence on tax compliance. The result of the mediating effects revealed that trust mediates the influence of accountability and political stability on tax compliance in Africa. However, it failed to mediate the influence of government effectiveness, regulatory quality, rule of law, and control of corruption on tax compliance among sample African countries. The study offers theoretical insights on the role of trust as a mediator on social exchange relationships from the context of public governance quality on tax compliance. It also implies to the policymakers that building trust is an important mechanism through which the impact of public governance on tax compliance would be more pronounced. The study further calls for replication of its findings in other continents such as the Americas, Asia, and Europe.

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