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The Impact of Institutional Governance on Economic Growth: A Panel Data Analysis

Author

Listed:
  • Hafiz Muhammad Abubakar Siddique

    (Federal Urdu University of Arts, Science and Technology, Islamabad, Pakistan)

  • Ahmad Nawaz

    (School of Economics, Quaid-i-Azam, University, Islamabad, Pakistan)

  • Muhammad Tariq Majeed

    (School of Economics, Quaid-i-Azam, University, Islamabad, Pakistan)

Abstract

This study is an attempt to analyse the nexus between institutional governance and economic growth for the panel of 91 countries over 1999-2014, using Random Effect Model and System GMM. We have examined the direct impact of governance by index of institutional governance. In addition, our analysis includes complementary role of institutions through the channel of population which is calculated by interaction variable of population and governance index. The results indicate that institutional governance has direct and significant impact on economic growth for selected panel of countries. Moreover, it has also indirect impact on economic growth through the channel of population; as direct impact of population is found to be negative and significant, whereas when institutional governance interacts with the population, sign turns positive and significant.

Suggested Citation

  • Hafiz Muhammad Abubakar Siddique & Ahmad Nawaz & Muhammad Tariq Majeed, 2016. "The Impact of Institutional Governance on Economic Growth: A Panel Data Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 5(4), pages 210-219, December.
    • Handle: RePEc:rfh:bbejor:v:5:y:2016:i:4:p:210-219
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    References listed on IDEAS

    as
    1. Nawaz, Saima, 2015. "Growth effects of institutions: A disaggregated analysis," Economic Modelling, Elsevier, vol. 45(C), pages 118-126.
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    Cited by:

    1. Aribah Aslam & Amjad Naveed & Ghulam Shabbir, 2021. "Is it an institution, digital or social inclusion that matters for inclusive growth? A panel data analysis," Quality & Quantity: International Journal of Methodology, Springer, vol. 55(1), pages 333-355, February.
    2. Khan, Qasim Raza & Xinshu, Mao & Qamri, Ghulam Muhammad & Nawaz, Ahmad, 2023. "From COVID to conflict: Understanding the deriving forces of environment and implications for natural resources," Resources Policy, Elsevier, vol. 83(C).
    3. Zhao, Yunying & Wang, Wenju & Liang, Zhentang & Luo, Peng, 2024. "Racing towards zero carbon: Unraveling the interplay between natural resource rents, green innovation, geopolitical risk and environmental pollution in BRICS countries," Resources Policy, Elsevier, vol. 88(C).
    4. Zhang Zhuo & Almalki Sultan Musaad O & Bashir Muhammad & Sher Khan, 2021. "Underlying the Relationship Between Governance and Economic Growth in Developed Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(3), pages 1314-1330, September.

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    More about this item

    Keywords

    Institutional Governance; Economic Growth; Random Effect Model; System GMM;
    All these keywords.

    JEL classification:

    • F30 - International Economics - - International Finance - - - General
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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