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On comprehensive wealth, institutional quality and sustainable development-quantifying the effect of institutional quality on sustainability

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  • Stoever, Jana

Abstract

This paper shows a significant and causal positive relationship between good institutions and sustainability. While sustainability is measured with the adjusted net saving (ANS) indicator, institutional quality is measured using an average of six dimensions of governance. An instrumental variable is used to account for endogeneity. Rearranging the set-up and running the regression on the net national savings rate lead to results displaying a much smaller and weaker effect. This finding suggests that compared to the saving of physical capital, the saving of non-physical capital is influenced more strongly by institutional quality.

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  • Stoever, Jana, 2012. "On comprehensive wealth, institutional quality and sustainable development-quantifying the effect of institutional quality on sustainability," Journal of Economic Behavior & Organization, Elsevier, vol. 81(3), pages 794-801.
    • Handle: RePEc:eee:jeborg:v:81:y:2012:i:3:p:794-801
    DOI: 10.1016/j.jebo.2010.12.017
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    Cited by:

    1. Kumar Debasis Dutta & Mallika Saha, 2023. "Role of governance in the nexus between financial development and sustainable development," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(6), pages 1181-1215, August.
    2. Jue Yang & Shunsuke Managi & Masayuki Sato, 2015. "The effect of institutional quality on national wealth: an examination using multiple imputation method," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 17(3), pages 431-453, July.
    3. Na Wang & Atta Ullah & Xiaofeng Lin & Taiming Zhang & Jie Mao, 2022. "Dynamic Influence of Urbanization on Inclusive Green Growth in Belt and Road Countries: The Moderating Role of Governance," Sustainability, MDPI, vol. 14(18), pages 1-18, September.
    4. Liviu Moldovan, 2015. "Sustainability Assessment Framework for VET Organizations," Sustainability, MDPI, vol. 7(6), pages 1-19, June.
    5. Charles-Henri DiMaria, 2014. "Sustainability matters," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(3), pages 1257-1269, May.
    6. Eslamloueyan, Karim & Jafari, Mahboubeh, 2019. "Do better institutions offset the adverse effect of a financial crisis on investment? Evidence from East Asia," Economic Modelling, Elsevier, vol. 79(C), pages 154-172.
    7. Flaviu Moldovan & Petruta Blaga & Liviu Moldovan & Tiberiu Bataga, 2022. "An Innovative Framework for Sustainable Development in Healthcare: The Human Rights Assessment," IJERPH, MDPI, vol. 19(4), pages 1-27, February.
    8. Ana Escalona-Orcao & Diego A. Barrado-Timón & Severino Escolano-Utrilla & Belén Sánchez-Valverde & Maricruz Navarro-Pérez & Mariola Pinillos-García & Luis Antonio Sáez-Pérez, 2020. "Cultural and Creative Ecosystems in Medium-Sized Cities: Evolution in Times of Economic Crisis and Pandemic," Sustainability, MDPI, vol. 13(1), pages 1-24, December.
    9. Stöver, Jana, 2016. "Green accounting, institutional quality and investment decisions: Macroeconomic implications from an analysis of the oil and mining sector," HWWI Research Papers 171, Hamburg Institute of International Economics (HWWI).
    10. Cristina Boţa-Avram & Adrian Groşanu & Paula-Ramona Răchişan & Marius Dan Gavriletea, 2018. "The Bidirectional Causality between Country-Level Governance, Economic Growth and Sustainable Development: A Cross-Country Data Analysis," Sustainability, MDPI, vol. 10(2), pages 1-24, February.

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    More about this item

    Keywords

    Sustainable development; Comprehensive wealth; Adjusted net saving; Genuine saving; Institutions; Settler mortality;
    All these keywords.

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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