Institutions are the rules of the game in a society by which the members of a society work together, shape the economic behavior of agents and help to explain the economic performance of the country. This paper attempts to empirically test the link between institutional quality and economic growth for 11 Asian developing economies by utilizing a panel cointegration test. Five institutional indicators that represent the overall institutional infrastructure of an economy are employed, namely corruption, rule of law, bureaucracy, repudiation of contracts and risk expropriation. The estimated results support the existence of a long-run equilibrium economic growth equation variables, consists of income per worker, capital formation, human capital, institutional quality and policy variable. The long-run panel equations reveal that institutional quality is statistically significant determinant of economic performance; higher institutional quality is associated with higher growth in income per worker. These findings suggest that besides physical and human capitals, institutional quality is another important factor for explaining differences in growth in Asian developing economies.
Download Info
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.
Volume (Year): V (2006) Issue (Month): 5 (September) Pages: 37-51 Download reference. The following formats are available: HTML
(with abstract),
plain text
(with abstract),
BibTeX,
RIS (EndNote, RefMan, ProCite),
ReDIF
Handle: RePEc:icf:icfjae:v:05:y:2006:i:5:p:37-51
Contact details of provider:
For technical questions regarding this item, or to correct its listing, contact: (Prof. Venkata Seshaih).