scholarly journals Institutional quality, openness, and investment in Africa

2003 ◽  
Vol 6 (2) ◽  
pp. 346-368 ◽  
Author(s):  
Tonia Kandiero ◽  
Satish Wadhawan
Keyword(s):  
Economic Growth ◽  
Theoretical Model ◽  
Trade Liberalization ◽  
Empirical Work ◽  
Institutional Quality ◽  
Quality Of Institutions ◽  
Openness To Trade ◽  
The Impact ◽  
The Behavior Of Government

This study supports the conventional wisdom that openness to trade is good for investment and economic growth. Whether this conclusion leaves space for institutional quality as a complimentary policy to determine the success of trade liberalization in Africa is the objective of this paper. The theoretical model and empirical analysis show how the behavior of government bureaucrats can be used to explain the impact on investment of the interaction between increased openness to trade and the quality of institutions. Empirical work is conducted using panel data observed over three periods: 1985-1990, 1990-1995, and 1995-2000.

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 Privatisation of Socially Owned Enterprises, the Methods Used and the Impact on Economic Growth Empirical evidence from Kosovo

2021 ◽  
Author(s):  
Ujkan Bajra
Keyword(s):  
Economic Growth ◽  
Empirical Test ◽  
Social Consequences ◽  
Aggregate Level ◽  
Quality Of Institutions ◽  
Panel Effects ◽  
Communist Countries ◽  
The Impact ◽  
Determining Factor

Abstract Privatisation together with the related social consequences and impact on the economy represent key challenges facing the former communist countries. This paper aims to assess how the privatisation of socially owned enterprises (SOEs) affects economic growth, entailing an empirical test using a panel effects regression analysis on a sample of 571 SOEs (or 1,600 assets) over a 16-year period (2003–2018). We find that privatisation at the aggregate level does not boost economic growth; in particular, the methods used to privatise SOEs or parts of them are not a determining factor. We also show that the quality of institutions is fragile, confirming a negative associations with economic growth. We also show that the effects of privatisation vary according to the method used, although we note that the sale of SOEs or parts thereof in the first decade of privatisation has been quite selective, devoid of development effects and faced with serious impediments to privatisation funds being directly invested in the economy.

scholarly journals Economic growth and quality of institutions in 27 postsocialist economies

2020 ◽  
Vol 47 (4) ◽  
pp. 769-787
Author(s):  
Constantinos Alexiou ◽  
Sofoklis Vogiazas ◽  
Nikita Solovev
Keyword(s):  
Economic Growth ◽  
Panel Cointegration ◽  
Institutional Quality ◽  
Supporting Evidence ◽  
Causality Analysis ◽  
Content Type ◽  
Long Run ◽  
Quality Of Institutions ◽  
The Relationship

PurposeThe relationship between institutional quality and economic growth is revisited.Design/methodology/approachA panel cointegration methodology and causality analysis are applied to 27 postsocialist economies over the period from 1996 to 2016.FindingsUtilizing the Worldwide Governance Indicators as a means of assessing the quality of institutions, it is found that in the long run, economic growth is positively associated with the rule of law and voice and accountability. In the short run, regulatory quality retains a positive effect, but voice and accountability demonstrate a puzzling negative effect on economic growth that merits further analysis. In exploring the causal dimension of our variables, supporting evidence of the strong links between the quality of institutions and economic growth is provided, hence rendering robust results.Originality/valueTo the best of the authors’ knowledge, it is the first time that an ARDL methodological framework, which addresses potential endogeneity issues, is used to investigate the relationship between institutional quality and growth in the context of postsocialist economies.

The Impact of Quality of Institutions on Sectoral FDI

2018 ◽  
Vol 53 (3) ◽  
pp. 174-188 ◽  
Author(s):  
Mohsin Hasnain Ahmad ◽  
Qazi Masood Ahmed ◽  
Zeeshan Atiq
Keyword(s):  
Institutional Quality ◽  
Integration Technique ◽  
Quality Matters ◽  
Services Sector ◽  
Long Run ◽  
Quality Of Institutions ◽  
Short Run ◽  
The Impact ◽  
Sectoral Fdi

This study addresses the issue whether institutional quality affects the sectoral FDI both in short run and long run in Pakistan. By employing ARDL co-integration technique, we analyse the impact of institutional quality on primary, manufacturing and services sectors FDI in Pakistan. The findings suggest that institutional quality matters in attracting FDI in manufacturing and services sectors in the long run while institutional quality does not have a significant impact on FDI in the primary sector. Moreover, results show that the impact of institutional quality on these sectors is not apparent in short run. The main findings from this research are that in long run institutional quality matters to attract substantial FDI in manufacturing and services sector of Pakistan. Hence, policies aimed at strengthening the institutional quality should be the priority for government. JEL: F21, O43, C22

scholarly journals Foreign Direct Investment and Economic Growth relationships: The moderation role of institutional quality

2021 ◽  
Vol 17 ◽  
pp. 41-54
Author(s):  
Vu Tuan Anh ◽  
Tran Ngoc Khanh Linh
Keyword(s):  
Economic Growth ◽  
Quantitative Methods ◽  
Institutional Quality ◽  
Secondary Data ◽  
The State ◽  
Asian Countries ◽  
Effect Model ◽  
The Impact

Most studies on the effect of the role of institutional quality on the relationship between foreign investment and economic growth have been carried out in Western countries. Very few studies on the above-mentioned relationships have been done in Asian countries during. This paper will be conducted in Asian countries using the following three models: Pooled OLS, Fixed effect model, and Random effect model. This paper uses secondary data from 10 Asian countries from 2011 to 2018. The empirical results show that (1): FDI has a positive effect on the economies of the countries. Asia between 2002 and 2018 (2) The quality of the state strengthens the impact of FDI on the economies of Asian countries between 2011 and 2018. These findings imply that if improving the quality of institutions, the state will attract more FDI and economic development The research paper is based on the scientific approach of quantitative methods to solve the problems posed, practical and effective service for the completion of the research purpose. The secondary data collected from the worldbank.org to create asymmetric data tables will be processed on STATA software.

scholarly journals Differences in Colonial Experience and the Institution-Economic Growth Nexus in West Africa

2020 ◽  
Vol 13 (2) ◽  
pp. 27-58
Author(s):  
Isiaka Akande Raifu ◽  
Obianuju Ogochukwu Nnadozie ◽  
Olaide Sekinat Opeloyeru
Keyword(s):  
Economic Growth ◽  
West Africa ◽  
West African ◽  
African Countries ◽  
Institutional Variables ◽  
Panel Data Estimation ◽  
Quality Of Institutions ◽  
Colonial Experience ◽  
The Impact

Does the quality of institutions affect economic growth in West African countries? Which institutional variable aids or harms economic growth in the region? Is the effect of institutions on economic growth in former French-colonised countries different from that of British-colonised countries? This study addresses these questions. Specifically, we first examined the effect of six institutional variables on economic growth for each of the 13 West African countries. Then, we employed panel data estimation techniques to examine the overall effect of the quality of institutions on the economies of the region. Finally, we grouped the 13 countries into French-colonised and British colonised countries following the argument of Acemoglu, Johnson and Robinson (2001,2005) and then examined the impact of institutional quality on the economic growth of these subgroups. Our findings reveal that the effect of institutional variables on the economy of each country varies. Overall, we find that government stability and democratic accountability have a positive and significant influence on economic growth, while control of corruption and socioeconomic conditions have deleterious effects on economic growth. Finally, institutions contribute positively to economic growth in French-colonised countries compared to British-colonised countries. The results imply that there is a need to strengthen institutions in West Africa, especially in former British colonies.

scholarly journals Foreign aid and economic growth in Nigeria: The role of institutional quality

2021 ◽  
Vol 39 (3) ◽  
Author(s):  
Adewale Samuel Hassan
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Institutional Quality ◽  
Moderating Effect ◽  
Institutional Framework ◽  
Quality Of Institutions ◽  
Positive Effect

This study examined the moderating effect of institutional quality on the foreign aid-economic growth nexus in Nigeria from 1984 to 2018 through the use of Johansen and canonical cointegration regression. Findings from the study indicate that while foreign aid has a separate positive effect on economic growth, the quality of institutions in the country diminishes and leaks out this positive effect. To this end, fiscal authorities in Nigeria need to review the existing institutional framework guiding the sourcing, disbursement and utilization of foreign aid with a view to detecting any loopholes and lapses that encourage diversion of fund and institutionalized corruption which prevent it from promoting growth.

scholarly journals The Impact of Institutional Quality on Economic Growth: Panel Evidence

2014 ◽  
Vol 53 (1) ◽  
pp. 15-31 ◽  
Author(s):  
Saima Nawaz ◽  
Nasir Iqbal ◽  
Muhammad Arshad Khan
Keyword(s):  
Economic Growth ◽  
Theoretical Model ◽  
Fixed Effects ◽  
Institutional Quality ◽  
Long Run ◽  
Asian Economies ◽  
Level Of Economic Development ◽  
Generalised Method Of Moments ◽  
The Impact

The aim of the present study is twofold. First, we develop a theoretical model which incorporates the role of institutions in promoting economic growth. The theoretical model predicts that rent seeking activities decrease as institutional quality improves, and hence income increases and vice versa. Second, we conduct an empirical analysis to quantify the impact of institutions on economic growth in selected Asian economies over the period 1996- 2012 by employing both static and dynamic panel system Generalised Method of Moments (GMM) technique with fixed effects. The empirical results reveal that institutions indeed are important in determining the long run economic growth in Asian economies. However, the impact of institutions on economic growth differs across Asian economies and depends on the level of economic development. The results reveal that institutions are more effective in developed Asia than developing Asia. This evidence implies that different countries require different set of institutions to promote long term economic growth. Keywords: Institutions, Economic Growth, Panel Evidence, Asia

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