scholarly journals Exploring the links between tourism and quality of institutions

2019 ◽  
pp. 215-247
Author(s):  
Eva Mª Buitrago Esquinas ◽  
Mª Ángeles Caraballo Pou
Keyword(s):  
Income Inequality ◽  
Economic Freedom ◽  
Institutional Quality ◽  
Positive Association ◽  
Econometric Analysis ◽  
Quality Of Institutions ◽  
New Perspective

This paper introduces a new perspective on the impacts of tourism on host communities by analyzing the links between tourism specialization and quality of institutions. Our research has two principal aims: firstly, to test the significance and sign of this relationship; and secondly, to explore the channels through which tourism could affect institutional quality. To this end, an econometric analysis is conducted using a sample of 92 countries over the period 1995-2014. The results indicate that there is a significant and positive association between tourism specialization and institutional quality. Moreover, this relation can be explained through three main channels: level of income, income inequality, and economic freedom. Este trabajo aporta una nueva perspectiva sobre los impactos del turismo analizando las relaciones entre la especialización turística de un país y la calidad de sus instituciones. La investigación plantea dos objetivos: (1) testar empíricamente la significatividad y signo de dichas relaciones y (2) explorar los canales a través de los que se producen. Realizamos un análisis econométrico para 92 países y 20 años. Los principales resultados indican la existencia de una asociación significativa y positiva entre turismo y calidad institucional que se produce principalmente a través de tres canales: nivel de renta, distribución de la renta y libertad económica.

scholarly journals The Impact of Institutional Quality on Social Cohesion: Evidence from Worldwide Perspective

2020 ◽  
Vol Volume 4 (Issue 3) ◽  
pp. 207-231
Author(s):  
Muhammad Nadeem ◽  
Mumtaz Anwar ◽  
Zahid Pervaiz
Keyword(s):  
Income Inequality ◽  
Social Cohesion ◽  
Ethnic Diversity ◽  
Institutional Quality ◽  
Fixed Effect Model ◽  
Effect Model ◽  
Two Factors ◽  
The Impact ◽  
Harmful Effects

Diversity and socioeconomic deprivation have been widely discussed as determinants of social cohesion. These two factors are considered to be a threat to social cohesion. The existing literature identifies the problem however the literature suggesting the solution is very limited. The most important determinant which can cure the problems of social cohesion is the better quality of institutions, however, the literature on this aspect is very scant. Current study has investigated the impact of institutional quality on social cohesion. Current study employs the fixed effect model for estimation. The analysis is conducted for 135 countries, using five-year average panel data. The results suggest that institutional quality augments social cohesion, while ethnic diversity, income inequality, and globalization are a threat to social cohesion. Gender equality and per capita income also augment social cohesion. Moreover, the threat to social cohesion is greater when there is: low institutional quality and high: ethnic diversity, and income inequality as compared to a situation where there are high institutional quality and low: ethnic diversity, and income inequality. The results further suggest that the harmful effects of ethnic diversity, globalization, and inequality can be, not only overcome by institutional quality but can also be put to use to enhance social cohesion.

scholarly journals Traditional Values and Institutional Quality

2021 ◽  
Vol 17 (3) ◽  
pp. 38-58
Author(s):  
Necati Berk ◽  
◽  
Nurbek Madmarov ◽  
Keyword(s):  
Rule Of Law ◽  
Institutional Quality ◽  
Political Stability ◽  
Cultural Dimensions ◽  
Traditional Values ◽  
Positive Effects ◽  
Linear Relationships ◽  
Quality Of Institutions ◽  
The World

Why do similar economic and political institutions function differently in various cultures? This paper tries to identify potentially important factors related to the institutional quality. We investigate the relationship between cultures, cultural dimensions: non-tradition in particular, and formal institutions to explain differences in the quality of institutions around the world. We use a measure of traditional values, structured by Inglehart and Baker, from the World Values Survey, to extend the literature on the determinants of institutions’ quality. We show that differences in traditional values are suggestive to explain differences in the quality of institutions across countries. The OLS method is utilized in order to analyze the factors of institutional quality in sixty countries in 2010–2014. In this study, the OLS models are employed in order to understand the key factors of institutional differences among countries in the period of 2010–2014. The empirical model results show that (i) non-tradition is a reliable significant variable with positive contributions on six institutional quality variables, (ii) urbanization has unexpected negative effects on some institutional quality indicators like rule of law, political stability and voice/accountability. However, it has meaningful contribution to control of corruption in the countries, (iii) economic development have increasing impacts on the majority of the institutional quality variables, (iv) while education has positive effects on government effectiveness, political stability and regulation quality, it has negative unexpected impacts on rule of law and voice/accountability, (v) openness has only effects on corruption and political stability, (vi) there are non-linear relationships between dependent variable(s) and independent variables rather than linear relationships

scholarly journals Environmental protection in selected one belt one road economies through institutional quality: Prospering transportation and industrialization

PLoS ONE ◽  
2021 ◽  
Vol 16 (1) ◽  
pp. e0240851
Author(s):  
Qiong Wu ◽  
Ghulam Rasool Madni
Keyword(s):  
Environmental Protection ◽  
Institutional Quality ◽  
Threshold Level ◽  
Environmental Deterioration ◽  
Time Period ◽  
One Belt One Road ◽  
Quality Of Institutions ◽  
Panel Threshold Regression

The effects of economic development on natural environment is explored by momentous literature, this study focuses on exploring the role of institutional quality for environmental protection in the selected One Belt One Road (OBOR) economies. The main goal of the paper is to find the threshold level of institutional quality that may minimize CO2 emissions in the atmosphere due to widespread industrialization and transportation. The data is selected for the panel of 33 OBOR economies over the time period of 1986–2018. The panel threshold regression technique is applied to determine the threshold level of institutional quality. The estimated results of the study reveal that 2.315 is the threshold level of institutional quality in selected partner OBOR countries. If quality of institutions is above the threshold level then CO2 emission do not contribute significantly for environmental deterioration in spite of growing industrialization and transportation and vice versa. The study emphasized to improve the institutional quality up to threshold level to get potential gains from industrialization and transportation.

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 Determinants of Sustainable Open Innovations—A Firm-Level Capacity Analysis

2021 ◽  
Vol 13 (16) ◽  
pp. 9088
Author(s):  
Solomon Gyamfi ◽  
Yee Yee Sein
Keyword(s):  
Open Innovation ◽  
Developing Economies ◽  
Capacity Utilization ◽  
Institutional Quality ◽  
Process Innovation ◽  
Sub Saharan Africa ◽  
Quality Data ◽  
Quality Of Institutions ◽  
Innovation Analysis

Institutional constraints impede firms’ open innovation. They have been a challenge, obstructing growth and sustainable development. Research on open innovation has shown that the quality of institutions essentially affects innovation in firms. Hence, prior research has made efforts to incorporate the quality of institutions into open innovation analysis. We can use a series of analyses to examine the impact of corruption, the tax system, and other indicators on firm innovation performance. However, developing economies, such as countries in sub-Saharan Africa, represent a specific group of countries that have long been perceived as those mostly deficient in the rule of law, with poor regulatory quality and a great deal of corruption. In these countries, it is also possible to see a lower number of studies, as the inability to obtain quality data to perform empirical analyses can often limit researchers. Nevertheless, employing data from the World Bank’s 2019 Enterprise Survey, this research aimed at exploring the determinants of sustainable open innovation as well as the effect of institutional quality on firms’ capacity utilization and process innovation through a PLS structural equation model analysis. Our research showed interesting findings, such as the fact that the quality of institutions significantly affects firms’ use of OI instruments and capacity utilization. This research also provides for the novelty of the analysis of capacity utilization in an open innovation analysis. The results support the hypotheses that low institutional quality negatively affects firms’ implementation of inbound open innovation instruments, and that there is a strong and positive effect of low institutional quality on firms’ capacity utilization. In addition, we confirm the premise that firms’ implementation of inbound open innovation instruments has a positive and significant influence on firms’ process innovation.

scholarly journals Institutions and Cyclicality of the Fiscal and Monetary Policies in Brazil

2021 ◽  
Vol 13 (4) ◽  
pp. 25
Author(s):  
Aline Gadelha ◽  
José Angelo Divino
Keyword(s):  
Institutional Quality ◽  
Fiscal Policies ◽  
Macroeconomic Policies ◽  
Monetary Policies ◽  
Reaction Functions ◽  
Quality Of Institutions ◽  
The Business Cycle ◽  
The Government ◽  
Switching Method

This paper investigates the relationship between the quality of institutions and the cyclical properties of macroeconomic policies in the Brazilian economy in the recent period. We extend the monetary and fiscal policy rules proposed by Taylor (2000) to incorporate a proxy for institutional quality. In the empirical analysis, we estimate reaction functions for monetary and fiscal policies by the Markov-Switching method. This methodology allows us to analyze how changes in the quality of institutions might influence the guidance of the fiscal and monetary policies over the sample period. The major results maintain that both monetary and fiscal policies are significantly countercyclical in periods that exhibit higher levels of institutional quality and are pro-cyclical or acyclical in periods which exhibit lower levels of institutional quality. Thus, the quality of institutions plays a key role in the government's ability to implement countercyclical monetary and fiscal policies to stabilize the Brazilian economy over the business cycle.

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.

Determinants of Investment by the Norwegian Sovereign Wealth Fund: GDP vs. Institutions

2011 ◽  
Vol 11 (1) ◽  
pp. 1850218 ◽  
Author(s):  
Mehmet Caner ◽  
Turanay Caner ◽  
Thomas J. Grennes
Keyword(s):  
Capital Flows ◽  
Institutional Quality ◽  
Institutional Investor ◽  
International Capital ◽  
Sovereign Wealth Fund ◽  
Quality Of Institutions ◽  
Primary Determinant ◽  
Per Capita ◽  
Analyze Data

During the current episode of globalization, capital has flown primarily to high income countries. Attempts to explain this “Lucas Paradox” have focused on the quality of institutions. We analyze data from a major institutional investor, the Norwegian Sovereign Wealth Fund, to estimate the separate effects of income per capita and institutional quality on international capital flows. After controlling for institutional quality, GDP per capita remains the primary determinant of investment.

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.

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