Institutional infrastructure and economic performance: dynamic panel data evidence
This paper attempts to empirically investigate the link between institutional quality and economic performance in a group of 72 countries during 1980–2001, using dynamic panel data analysis. Five institutional indicators that represent the overall institutional infrastructures of an economy are empl...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Springer
2008
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| Online Access: | http://psasir.upm.edu.my/id/eprint/15248/1/Institutional%20infrastructure%20and%20economic%20performance%20dynamic%20panel%20data%20evidence.pdf |
| _version_ | 1796968807711899648 |
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| author | Law, Siong Hook Amin Noordin, Bany Ariffin |
| author_facet | Law, Siong Hook Amin Noordin, Bany Ariffin |
| author_sort | Law, Siong Hook |
| collection | UPM |
| description | This paper attempts to empirically investigate the link between institutional quality and economic performance in a group of 72 countries during 1980–2001, using dynamic panel data analysis. Five institutional indicators that represent the overall institutional infrastructures of an economy are employed, namely corruption, rule of law, bureaucracy, repudiation of contracts and risk of expropriation. The empirical results demonstrate that institutions’ variables are statistically significant determinants of economic performance. The findings also suggest that the effects of institutional quality vary according to the level of economic development, where institutions are more responsive in the low-income and middle-income countries. In terms of specific effect of institutional development, the results reveal that the higher level of rule of law is most potent in delivering long-run economic benefits. |
| first_indexed | 2024-03-06T07:33:47Z |
| format | Article |
| id | upm.eprints-15248 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T07:33:47Z |
| publishDate | 2008 |
| publisher | Springer |
| record_format | dspace |
| spelling | upm.eprints-152482016-04-07T06:19:50Z http://psasir.upm.edu.my/id/eprint/15248/ Institutional infrastructure and economic performance: dynamic panel data evidence Law, Siong Hook Amin Noordin, Bany Ariffin This paper attempts to empirically investigate the link between institutional quality and economic performance in a group of 72 countries during 1980–2001, using dynamic panel data analysis. Five institutional indicators that represent the overall institutional infrastructures of an economy are employed, namely corruption, rule of law, bureaucracy, repudiation of contracts and risk of expropriation. The empirical results demonstrate that institutions’ variables are statistically significant determinants of economic performance. The findings also suggest that the effects of institutional quality vary according to the level of economic development, where institutions are more responsive in the low-income and middle-income countries. In terms of specific effect of institutional development, the results reveal that the higher level of rule of law is most potent in delivering long-run economic benefits. Springer 2008 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/15248/1/Institutional%20infrastructure%20and%20economic%20performance%20dynamic%20panel%20data%20evidence.pdf Law, Siong Hook and Amin Noordin, Bany Ariffin (2008) Institutional infrastructure and economic performance: dynamic panel data evidence. Transition Studies Review, 15 (3). pp. 542-557. ISSN 1614-4007; ESSN: 1614-4015 http://link.springer.com/article/10.1007%2Fs11300-008-0026-1 10.1007/s11300-008-0026-1 |
| spellingShingle | Law, Siong Hook Amin Noordin, Bany Ariffin Institutional infrastructure and economic performance: dynamic panel data evidence |
| title | Institutional infrastructure and economic performance: dynamic panel data evidence |
| title_full | Institutional infrastructure and economic performance: dynamic panel data evidence |
| title_fullStr | Institutional infrastructure and economic performance: dynamic panel data evidence |
| title_full_unstemmed | Institutional infrastructure and economic performance: dynamic panel data evidence |
| title_short | Institutional infrastructure and economic performance: dynamic panel data evidence |
| title_sort | institutional infrastructure and economic performance dynamic panel data evidence |
| url | http://psasir.upm.edu.my/id/eprint/15248/1/Institutional%20infrastructure%20and%20economic%20performance%20dynamic%20panel%20data%20evidence.pdf |
| work_keys_str_mv | AT lawsionghook institutionalinfrastructureandeconomicperformancedynamicpaneldataevidence AT aminnoordinbanyariffin institutionalinfrastructureandeconomicperformancedynamicpaneldataevidence |