Theoretical and Applied Economics
No. 4 / 2020 (625), Winter
Institutions and economic growth: A comparative analysis of developing and developed countries based on institutionalized social technologies index
Karachi University Business School, University of Karachi, Pakistan
Qazi Masood AHMED
Institute of Business Administration, Karachi, Pakistan
Abstract. This paper used index of institutionalized social technologies (lIST) developed by Siddiqui and Ahmed (2018) as a proxy of institutions quality, to analyse their impact on Economic growth. This index was made up of two sub-indices namely Risk reducing technologies and Anti Rent seeking technologies. The cross sectional analysis covered 141 countries. The values are taken as average of the period of 1990 to 2008. The effectiveness of these indices is tested in growth models along with other variables such as inflation, human capital, savings and trade. It also factors in initial conditions to measure signs of convergence. OLS and GMM based methodologies are employed for estimation. The findings are robust and consistent. Institutional quality is positively associated with economic growth suggesting that institutional reforms such as minimizing corruption, strengthen property rights, improving law and order conditions, and enforcing contracts can leads to economic growth. Moreover, the impact of institutions on growth is more pronounces in high income countries, showing institutions are also crucial for sustenance of growth. Among the two forms of institutions, the risk reducing technologies affect economic growth considerably more than anti-rent seeking technologies. The results also confirm conditional convergence as predicted in the modern theories of growth. Overall, these results suggest that effectiveness of institutional reforms would depend upon how these institutions impact growth.
Contents
The European Union in the face of the prospect of achieving major objectives in the conditions of the pandemic and economic-financial crisis
What determines the portfolio investment flows to Central and Eastern European Countries in the European Union 2001-2017?
Analysis of the correlation between taxation indicators and economic growth at the macroeconomic level in European Union and Romania
Measuring Adobe Company performance from the perspective of a Complex Adaptive System
Welfare enhancing uncertainty
Business process modeling. Using Unified Modeling Language to streamline the design of the TO-BE system within a company
Static and dynamic analysis of intra-industry trade of BRICS countries
Fossil fuel consumption, economic growth and CO2 emissions. Causality evinced from the BRICS world
Methods used in risk financing
Is there a relationship between economic welfare and innovation performance? Evidence from selected European countries
Analyzing Romania GDP: Final consumption, gross investment, and net exports influence compared to previously published models
Analysis of the natural movement of the population under the spectrum of the health crisis
On the relationship between economic growth and government debt for Bulgaria. Test of the Reinhart-Rogoff hypothesis
Testifying the role of regulatory environment in trade facilitation: Impact on intra-regional trade in South-Asia
India and trade blocs: A gravity model analysis
Predicting the volatility in stock return of emerging economy: An empirical approach
Portfolio optimization with VaR approach: A comparative analysis for Japan, London, New York and India
Income-dependent impacts of financial development and human capital on economic growth. A non-stationary panel analysis
Monetary policy and exchange rate pass-through in India
Impact of medium of instruction in education on economic growth and development
Institutions and economic growth: A comparative analysis of developing and developed countries based on institutionalized social technologies index
Exports, imports and economic growth in India: An empirical analysis
BEPS – A challenge for the increasing budget revenues in the process of digitalization
Implementation of public policies. The compatibility of the model of public policy with the target space of the policy
Fiscal sustainability in Romania