Institutional Change and Economic Growth in East Asia after the Asian Financial Crisis, 1997-98

2020 ◽  
Vol 35 (1) ◽  
pp. 29-51
Author(s):  
Kee Hoon Chung
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Institutional Change ◽  
East Asia ◽  
Fixed Effects ◽  
Panel Data Analysis ◽  
Institutional Quality ◽  
Asian Financial Crisis ◽  
Fixed Effects Model ◽  
The World

Theories on institutional change assert that exogenous shocks are critical in transforming path-dependent institutions. There is not much empiric research, however, that has investigated whether that is indeed the case. To fill this gap, this study investigates the effects of institutional quality on economic growth with a focus on East Asia before and after the 1997-98 Asian financial crisis, which delivered a critical shock in economic activities and institutions in East Asia. Using panel data analysis from 1981 and 2007, I investigate whether the effect of institutional quality on economic growth differed in East Asia compared to rest of the world before the crisis and whether such relationship changed after the crisis. Using two-way fixed effects model, the estimation shows that the effect of institutional quality on economic growth was positive on average for the rest of the world after the crisis but negative for East Asia. The negative coefficient was particularly strong for the three countries—South Korea, Indonesia, and Thailand—that suffered the most during the crisis. However, in the long term, there was no significant change of this negative effect.

scholarly journals Media and Economic Growth: Country Groups Difference via Panel Data

2020 ◽  
Vol 5 (5) ◽  
Author(s):  
Viktoriia Ahapova
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Fixed Effects ◽  
Panel Data Analysis ◽  
Press Freedom ◽  
Foreign Direct Investments ◽  
Fixed Effects Model ◽  
Data Set ◽  
The Press ◽  
Per Capita

The present article investigates the link between economic growth, namely GDP per capita, and the media activity represented with the indicator of the press freedom alongside other factors such as infrastructure, institutional conditions, and foreign direct investments. A panel of 179 countries was used for the period from 2000 to 2015. In particular, we run two panel data analysis models, fixed effects and random effects models, and examined their output with Hausman’s specification test, which pointed the fixed effects model as more efficient for the presented data set. However due to the presence of serial correlation, heteroskedastic, and cross-panel dependence, a Prais-Winsten regression with panel corrected standard errors (PCSE) was implemented. The comparative analysis of models of four country groups, divided by GNI per capita, was conducted. Both statistically significant correlation coefficients and models’ output provided evidence of an association between economic growth and the press activity.

scholarly journals The Consequences of Corruption on Economic Growth in Mediterranean Countries: Evidence from Panel Data Analysis

2018 ◽  
Author(s):  
Hicham Boussalham
Keyword(s):  
Economic Growth ◽  
Fixed Effects ◽  
Negative Impact ◽  
Panel Data Analysis ◽  
Suitable Model ◽  
Fixed Effects Model ◽  
Mediterranean Countries ◽  
Individual Effects ◽  
The Individual ◽  
The Impact

This study attempts to assess the impact of corruption on economic growth in the Mediterranean countries, during the period from 1998 to 2007. Econometric analysis using panel regression has been adopted to test this effect. Individual effects models such as random effects model and fixed effects model were applied to the study sample of 160 observations, and to choose the suitable model, we implemented several tests. For our analysis, we used a basic model that includes the dependent variable GDP per capita as a factor of economic growth and the corruption perception index as the independent variable concerned. Then we completed the model with several standardized macroeconomic control variables mentioned above and applied the individual effects models. The outcomes illustrate that corruption has a negative impact on the selected Mediterranean countries’ economic growth.

scholarly journals Empirical Analysis on Regional Economic Growth from the Perspectives of Entrepreneurship and Investment in Research and Development

2020 ◽  
Vol 15 (8) ◽  
pp. 1259-1265
Author(s):  
Hongmei Chen ◽  
Min Liang
Keyword(s):  
Economic Growth ◽  
Research And Development ◽  
Fixed Effects ◽  
Panel Data Analysis ◽  
Regional Economic Growth ◽  
Fixed Effects Model ◽  
Promoting Effect ◽  
Regional Economic ◽  
Entrepreneurial Spirit ◽  
D Investment

This paper mainly assesses the influence of entrepreneurship over regional economic growth (REG) and the investment in research and development (R&D), and puts forward countermeasures to promote the REG. The fixed effects model for panel data analysis was adopted to evaluate how entrepreneurship directly affects REG and indirectly affects REG via R&D investment. The results show that the entrepreneurial and innovative spirits of entrepreneurs promote economic growth; the promoting effect of entrepreneurial spirit is greater than that of innovative spirit; R&D investment mediates the influence of entrepreneurship over economic growth; the three major economic regions of China, namely, East, Central, and West China, have different laws in the influence of entrepreneurial spirit and innovative spirit on economic growth and R&D investment, owing to the variation in resources endowment and entrepreneurship allocation. The research results help policy-makers formulate regional economic development strategies in the light of entrepreneurship configuration and R&D investment.

scholarly journals The Consequences of Corruption on Economic Growth in Mediterranean Countries: Evidence from Panel Data Analysis

2018 ◽  
Author(s):  
Hicham Boussalham
Keyword(s):  
Economic Growth ◽  
Fixed Effects ◽  
Negative Impact ◽  
Panel Data Analysis ◽  
Suitable Model ◽  
Fixed Effects Model ◽  
Mediterranean Countries ◽  
Individual Effects ◽  
The Individual ◽  
The Impact

This study attempts to assess the impact of corruption on economic growth in the Mediterranean countries, during the period from 1998 to 2007. Econometric analysis using panel regression has been adopted to test this effect. Individual effects models such as random effects model and fixed effects model were applied to the study sample of 160 observations, and to choose the suitable model, we implemented several tests. For our analysis, we used a basic model that includes the dependent variable GDP per capita as a factor of economic growth and the corruption perception index as the independent variable concerned. Then we completed the model with several standardized macroeconomic control variables mentioned above and applied the individual effects models. The outcomes illustrate that corruption has a negative impact on the selected Mediterranean countries’ economic growth.

scholarly journals Impact of Political Instability on Economic Growth in CEE Countries

2021 ◽  
Vol 17 (2) ◽  
pp. 582-592
Author(s):  
Arjona Çela ◽  
Eglantina Hysa
Keyword(s):  
Economic Growth ◽  
Fixed Effects ◽  
Positive Impact ◽  
Panel Data Analysis ◽  
Stability Index ◽  
Chief Executive ◽  
Political Stability ◽  
The Political ◽  
Fixed Effects Model ◽  
Negative Effect

сPolitical instability is often considered to have a negative influence on economic growth. Hence, the study aims to examine whether instability of the political environment (measured by the political stability in- dex and duration of the chief executive in the office) significantly influences economic growth in Central and Eastern European (CEE) countries. The methodology used is a fixed effects model for panel data analysis where the dependent variable is the real growth of gross domestic product (GDP) per capita. The data covers the period from 2006 to 2016 for 13 CEE countries. Additionally, the study considered other macroeconomic variables, such as investment, inflation, human capital, trade openness, etc. The research findings indicate that the political stability index has a positive effect on economic growth, as expected and predicted in the literature. However, the indicator of the years the chief executive has been in the office has shown a negative effect. This effect appears to be weakly significant only for the second variable. These findings allowed us to conclude that the political stability index positively influences economic growth, while the years the chief executive stays in the office has a negative effect. Frequent changes in the cabinet can actually have a positive impact in transition countries characterised by corruption, meaning that the long stay of a chief executive in the office can lead to power abuse.

scholarly journals Banking system, Institutional quality, and Economic growth: Panel data analysis on a sample of countries in the MENA region

2021 ◽  
Vol 2 (2) ◽  
pp. 122-128
Author(s):  
Lamia Jamel
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Financial Development ◽  
Random Effects ◽  
Fixed Effects ◽  
Panel Data Analysis ◽  
Banking System ◽  
Institutional Quality ◽  
Marginal Effect ◽  
Mena Region

The nexus among financial development and economic growth has long remained a subject matter of considerable debate in the financial and economic literature. This article examines the relationships between financial development, institutions, and economic growth. This indicates that the marginal effect of financial development on economic growth depends on the quality of institutions. To do so, we employ a panel data of 14 MENA countries during the period of study from 2008 to 2019. For the econometric methodology, we use fixed and random effects models. To choose between fixed effects and random effects, we employ the Hausman test. Based on the empirical findings, we demonstrate that financial development has a positive effect on economic growth. Furthermore, we have observed that institutional quality seems to be a necessary complement to financial development. Consequently, it is important to implement policies leading to the deepening of financial systems, through a including a solid institutional framework. Thus, by promoting such development and better institutional quality, economic growth will thus be accelerated.

scholarly journals Export and Economic Growth Nexus in the GCC Countries: A panel Data Approach

2017 ◽  
Vol 7 (12) ◽  
pp. 01
Author(s):  
Hatem Hatef Abdulkadhim ◽  
Sazan Taher Saeed
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Fixed Effects ◽  
Panel Data Analysis ◽  
Strong Support ◽  
Ordinary Least Squares ◽  
Empirical Literature ◽  
Fixed Effects Model ◽  
Font Size ◽  
Growth Hypothesis

<p><span style="font-size: medium;">The export and economic growth nexus, which is called Balassa’s Export-Led Growth Hypothesis (ELGH)  </span><span style="font-size: medium;">in the literature, is still an unstill issue in both the theoretical and empirical literature. In the present study, the effect of export on economic growth in</span><span style="font-size: medium;">  </span><span style="font-size: medium;">oil exporting developing countries, namely, Bahrain, Saudi Arabia, Qatar,</span><span style="font-size: medium;">  </span><span style="font-size: medium;">Kuwait, UAE, and Oman in the 1990–2014 period was tested based on three models, pooled ordinary least squares (POLS), fixed effects model (FEM), and random effects model (REM)</span><span style="font-size: medium;">  </span><span style="font-size: medium;">via panel data analysis . The findings revealed strong support for the “export-led growth” hypothesis. In addition, our results show that apart from growth in the labor force, investments in capital formation are necessary for economic growth. According to the obtained results, the ability to adopt technological changes in order to increase efficiency, and sustain economic development is also important.</span><span style="font-size: medium;">  </span></p>

The Consequences of Corruption on Economic Growth in Mediterranean Countries: Evidence from Panel Data Analysis

2018 ◽  
Author(s):  
Hicham Boussalham
Keyword(s):  
Economic Growth ◽  
Fixed Effects ◽  
Negative Impact ◽  
Panel Data Analysis ◽  
Suitable Model ◽  
Fixed Effects Model ◽  
Mediterranean Countries ◽  
Individual Effects ◽  
The Individual ◽  
The Impact

This study attempts to assess the impact of corruption on economic growth in the Mediterranean countries, during the period from 1998 to 2007. Econometric analysis using panel regression has been adopted to test this effect. Individual effects models such as random effects model and fixed effects model were applied to the study sample of 160 observations, and to choose the suitable model, we implemented several tests. For our analysis, we used a basic model that includes the dependent variable GDP per capita as a factor of economic growth and the corruption perception index as the independent variable concerned. Then we completed the model with several standardized macroeconomic control variables mentioned above and applied the individual effects models. The outcomes illustrate that corruption has a negative impact on the selected Mediterranean countries&rsquo; economic growth.

Pacific Asia: Economic Integration and Prospects of Russia

2011 ◽  
pp. 67-75
Author(s):  
V. Usol'tsev
Keyword(s):  
Financial Crisis ◽  
Economic Integration ◽  
Asian Financial Crisis ◽  
Asia Pacific ◽  
Pacific Region ◽  
Asia Pacific Region ◽  
World Crisis ◽  
The World ◽  
Pacific Asia

The article describes in detail the integration processes in the Asia-Pacific region, the influence of the Asian financial crisis of 1997-1998 biennium. and the world crisis 2007-2008 biennium, as well as the prospects of the Russian connection.

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