The Effect of Good Governance as Institutional Quality on Entrepreneurial Motivation in High- and Low-Income Countries

2020 ◽  
Vol 31 (1) ◽  
pp. 109-129
Author(s):  
Changbin Woo
2012 ◽  
Vol 51 (4II) ◽  
pp. 97-116 ◽  
Author(s):  
Unbreen Qayyum ◽  
Adnan Haider

Foreign capital and institutional quality simultaneously play an important role in the development process of low-income countries. By and large developing nations fell short of funds necessary to spur the economic growth. Along with this constraint, they are facing the down fall in the quality of governance. Low earned revenues and high government expenditure increase the reliance upon the foreign capital mostly in the form of foreign aid and external debt. Just the availability of foreign funds is not sufficient to stimulate the economic growth, there is a need of good governance along with better quality of institutions that will act as a catalyst and improves the efficiency of capital, [see for instance, Agnor and Montiel (2010)]. Good governance establishes impartial, predictable and consistently enforced rules in the form of institutions and thus crucial for the sustained growth [North (1990 and 1992)]. Those countries which have good institutions show positive growth rates whenever the stock of capital increases but the countries with bad institutions, increase in capital investment may lead to negative growth rates due to rent seeking and other unproductive activities, Hall, et al. (2010). In this context, North (1992) argues that the institutions as well as the ideology shape economic performance. While taking into account the technology used, institutions affect economic performance by determining the cost of transaction and production. Formal rules, informal constraints and characteristics of enforcing those constraints together formulate the institutions. Institutions affect economic performance and the differential in performance of economies is basically influenced by the way institutions evolve. The neoclassical economic theory is of little help in investigating the sources beneath economic performance because institutions are taken for granted in their models Agnor and Montiel (2010).


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yoon Heo ◽  
Nguyen Thi Thanh Huyen ◽  
Nguyen Khanh Doanh

PurposeThis paper aims to analyze the impacts of institutional quality on trade flows of NAFTA with a panel data set of 105 countries spanning the period 2006–2017.Design/methodology/approachWe applied the system generalized method of moment (GMM) estimator to investigate the impacts.FindingsThe results show that institutional quality is a positive and significant determinant of international trade flows of the NAFTA bloc and its trading partners. Our results also indicate that the impact of institutional quality depends on the level of economic development of NAFTA's trading partners. Specifically, the trade elasticity of institutional quality is the highest for NAFTA’s trade with middle-income countries and the lowest for NAFTA's trade with low-income countries. In the long run, the trade elasticity of institutional quality increased significantly, with the highest increase in the case of NAFTA's trade with medium-income countries and the lowest increase in the case of NAFTA's trade with low-income countries.Originality/valueThis study contributes to the existing literature in three different ways. First, we examine the differential impact of institutions on NAFTA's trade according to the level of economic development of NAFTA's trading partners. Second, we compare the differential trade elasticity of institutional quality in the long run. Finally, we support our findings through an improved research methodology by using the system GMM estimation. This method allows us to overcome the potential sample bias, omitted variable problems and endogeneity of explanatory variables.


2020 ◽  
Vol 12 (9) ◽  
pp. 3523 ◽  
Author(s):  
Yajie Liu ◽  
Feng Dong

Long-term exposure to haze pollution will not only affect citizens’ health and shorten their life expectancy, but also cause unpredictable economic losses. In addition, it has become the focus of worldwide concern whether and how institutional quality affects haze pollution. In this study, we explored the impacts of political corruption on haze pollution in 139 global countries. We employed a geographical detector model to identify the driving factors of spatial differentiation in global haze pollution. In addition, corruption degree and per capita gross domestic production (GDP) were used as threshold variables to analyze whether there is a nonlinear relationship between corruption and haze pollution. The main results are as follows. (1) The corruption perception index (CPI) was negatively correlated with haze pollution and had a strong and stable explanatory power for the heterogeneity of haze pollution. Besides, the degree of corruption had a significant triple threshold effect on haze pollution. When the CPI crossed the double threshold value, strengthening institutional quality could inhibit haze pollution. (2) Per capita GDP significantly determined how institutional quality exerted an effect on haze pollution, which was also a key factor affecting spatial heterogeneity of PM2.5 concentration. In high-income countries, choosing a more honest ruling party could substantially reduce haze pollution, while in low-income countries, an incompetent government could increase the degree of haze pollution. (3) The “Matthew effect” was manifested in our study. It indicated that the higher was the level of economic development, the lower was the severity of haze pollution. Based on these results, we state that policy makers cannot simply alleviate haze pollution through anti-corruption construction. For low-income countries, ensuring economic growth is the prerequisite for the substantial alleviation of haze pollution. On the contrary, high-income countries should pay more attention to the integrity of government institutions and strengthen the awareness of anti-corruption.


2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Grace Namirembe ◽  
Robin Shrestha ◽  
Julieta Mezzano ◽  
Lynne M. Ausman ◽  
Dale Davis ◽  
...  

Abstract Background The public health burden of undernutrition remains heavy and widespread, especially in low-income countries like Nepal. While predictors of undernutrition are well documented, few studies have examined the effects of political will and quality of policy or program implementation on child growth. Methods Data were collected from two nationwide studies in Nepal to determine the relationship between a metric of nutrition ‘governance’ (the Nutrition Governance Index), derived from interviews with 520 government and non-government officials responsible for policy implementation and anthropometry measured for 6815 children in 5556 households. We employed Generalized Estimating Equation (GEE) and multilevel regression models. Results A higher NGI (more effective nutrition governance) is positively associated with height-for-age as well as weight-for-height in children over 2 years of age compared to younger children (HAZ; β = 0.02, p < 0.004, WHZ; β = 0.01, p < 0.37). Results from the hierarchical model show that a one-point increase in the NGI is significantly associated with a 12% increase in HAZ and a 4% increase in WHZ in older children (> 24 months old). Mothers’ education, child’s age, BMI and no fever in the past 30 days were also protective of stunting and wasting. Seven percent and 17% of the overall variance in HAZ and WHZ, respectively, are accounted for by variations across the 21 district locations in which sampled households were located. Mean HAZ differs considerably across districts (intercept = 0.116, p < 0.001). Conclusions These results highlight the importance of effective management of policy-based programming and resource use to bring about nutrition gains on the ground. The NGI explained a non-negligible amount of variation in HAZ and WHZ, which underscores the fundamental role that good governance plays in promoting child nutrition and growth, and the value of seeking to measure it to assist governments in moving policies from paper to practice.


2021 ◽  
Vol 40 (1) ◽  
Author(s):  
Assef Filfilan

This paper investigates the effects of financial development on economic growth with especial emphasis on the role played by governance quality. An indicator of governance built from the Principal Component factor method (PCF) and which takes into account the simultaneous effects of political, institutional and economic governance, is used in mediating such relationship. The study is carried out using a two-step system dynamic GMM method for 93 developed and developing countries over the 1996–2018 period. The findings from the study revealed that the effects of financial development on economic growth various according to the nature of governance and the level of development of countries.  Results show a non-significant effect of financial development on economic growth for low-income countries and a positively significant impact in middle and high-income ones. Estimations demonstrate also that good governance plays an important and significant role in mediating the finance-growth relationship. Finally, results demonstrate that there is a certain threshold level that countries must achieve to make government domestic credit to private sector favorable to economic growth.


Author(s):  
Davor Petrović ◽  
Vida Čulić ◽  
Zofia Swinderek-Alsayed

AbstractJoubert syndrome (JS) is a rare congenital, autosomal recessive disorder characterized by a distinctive brain malformation, developmental delay, ocular motor apraxia, breathing abnormalities, and high clinical and genetic heterogeneity. We are reporting three siblings with JS from consanguineous parents in Syria. Two of them had the same homozygous c.2172delA (p.Trp725Glyfs*) AHI1 mutation and the third was diagnosed prenatally with magnetic resonance imaging. This pathogenic variant is very rare and described in only a few cases in the literature. Multinational collaboration could be of benefit for the patients from undeveloped, low-income countries that have a low-quality health care system, especially for the diagnosis of rare diseases.


Sign in / Sign up

Export Citation Format

Share Document