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 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 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.

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 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 Deciphering African Financial Development Interaction With Institutional Quality And Economic Growth Nexus

ETIKONOMI ◽  
2021 ◽  
Vol 20 (1) ◽  
pp. 23-44
Author(s):  
Easmond Baah Nketia ◽  
Yusheng Kong
Keyword(s):  
Economic Growth ◽  
Private Sector ◽  
Financial Development ◽  
Institutional Quality ◽  
Political Stability ◽  
Estimation Technique ◽  
Government Effectiveness ◽  
Development Indicators ◽  
Regulatory Quality ◽  
Domestic Savings

The paper scrutinized the correlation between financial development interaction with institutional quality and economic growth in Africa. The study adopted 30 different interactions. The study used the Augmented mean group estimation technique to estimate the model. Gross domestic savings/GDP and broad money/GDP positively influenced growth with the majority of interactions with institutional quality indicators. Credit to Private Sector/GDP interaction with Voice & Accountability; and Political Stability has a higher impact on growth than any interaction variable. However, government effectiveness, regulatory quality, and corruption control are weak in Africa; even if interacted with financial development indicators, it mostly reduces economic growth. This study recommends that governments in Africa strengthen financial development indicators; Bank Deposit/GDP, Gross Domestic Savings/GDP and Credit to private sector/GDP, and institutional quality indicator political stability & absence of violence since their interaction has proven to aid rapid economic growth.JEL Classification: E17, F62, F63How to Cite:Nketia, E. B., & Kong, Y. (2021). Decipheting African Financial Development Interaction with Institutional Quality and Economic Growth Nexus. Etikonomi: Jurnal Ekonomi, 20(1), 23 – 44. https://doi.org/10.15408/etk.v20i1.16177.

scholarly journals Financial Development, Institutional Quality and Economic Growth: Evidence from ECOWAS Countries

2020 ◽  
Vol 11 (1) ◽  
pp. 6-17
Author(s):  
Michael Appiah ◽  
Fanglin Li ◽  
Doreen Idan Frowne
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Emerging Economies ◽  
Positive Impact ◽  
Institutional Quality ◽  
Positive Association ◽  
Regulatory Quality ◽  
And Control ◽  
The Relationship ◽  
Control Of Corruption

Most of the literature that explored the relationship between financial development and economic growth taking into consideration the roles played by institutional quality in the ECOWAS region still debates on the roles of institutional quality on economic growth. This study used data from 1996-2017 for 15 emerging economies within the ECOWAS by applying two-step SYS GMM (SGMM) estimators. The following conclusions were developed: first, the study discovered that financial development has no significant and positive impact on economic growth in the ECOWAS region. Secondly, regulatory quality and control of corruption, which are considered as institutional quality variables, have opposing results with control of corruption reducing growth as well as regulatory quality variable increasing growth. Again, the results indicate that capital formation has a positive association with growth and labor force influencing growth negatively. Finally, due to a lack of proper corruption control systems in the region and poor financial sector development, growth cannot improve.

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 Corruption, Institutional Quality and Economic Growth in West African Countries (1995-2017)

2019 ◽  
Vol 9 (2) ◽  
pp. 217
Author(s):  
Osabiyi, Kolawole Emmanuel ◽  
Aiyegbusi Oluwole. Oladipo ◽  
OLOFIN, Olabode Philip
Keyword(s):  
Economic Growth ◽  
West Africa ◽  
Institutional Quality ◽  
Political Stability ◽  
West African ◽  
Series Data ◽  
Panel Var ◽  
African Countries ◽  
Regulatory Quality ◽  
Control Of Corruption

This study examines the relationship among corruption, institutional quality and economic growth; and analyses the interaction effects of corruption and institutional qualities such as political stability and absence of violence (pv), government effectiveness (ge), regulatory quality (rq), control of corruption (cc), voice and accountability (va), and rule of law (rl) on economic growth (gdp) in West African Countries. Time series data covering the period between 1995 and 2017 were employed with Panel VAR method. Our results showed that corruption (cp) and economic growth are negatively related at lag one, and positively related at lag two, but the results were statistically insignificant. All institutional quality indicators, except ge are negatively related to economic growth at lag one, but at lag 2, positively related except rq, cc, and pv. These results were also statistically insignificant, except that of pv which is statistically significant.Our results also showed that interaction of control of corruption with corruption (cccp); regulatory quality with corruption (rqcp); and political stability and absence of violence with corruption (pvcp) negatively affect economic growth in West Africa both at lag one and two and were statistically insignificant. These results are expected in countries that are poorly rated both in terms of corruption and institutional quality. The study suggests reasonable policy interventions aimed at reducing the incidence of corruption as well as improving institutional quality in West Africa Countries.

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.

scholarly journals Investigating the Relationship of E-Government, Control of Corruption, Economic Prosperity and Environmental Degradation: An Analysis of Asian Region

2017 ◽  
Vol 3 (2) ◽  
pp. 18-28 ◽  
Author(s):  
Syeda Anam Hassan
Keyword(s):  
Economic Growth ◽  
Environmental Degradation ◽  
Urban Population ◽  
Political Stability ◽  
Economic Prosperity ◽  
And Control ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship ◽  
Control Of Corruption

To generate and maintain sustainable economic growth, e-government and control of corruption are considered as a key contributor in the nation. E-government not only increases control of corruption and economic growth but also reduces environmental degradation. In this study, the relationship of e-government to control of corruption, economic prosperity and environmental degradation has been investigated. Government has a positive and significant association with economic prosperity and control of corruption. However, e-government negatively related to S curve. The impact of control variables such that manufacturing, working for population and political stability all are positive to economic prosperity while exports and urban population show a negative association with the economic prosperity. In the case of environmental degradation, manufacturing and working population shows negative relationship while exports, political stability, and urban population shows a positive association with the environmental degradation. The study suggests that constructive national policies by practitioners and policy makers are required for the development of e-government.

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