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The Influence of Institutional Quality on Human Development: Evidence from Developing Countries

Author

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  • Kamalu, Kabiru

    (College of Social and Management Science Al-Qalam University Katsina Dutsinma Road 820102, Katsina NIGERIA.)

  • Wan Ibrahim, Wan Hakimah

    (Faculty of Business and Management University Sultan Zainal Abidin Gong Badak Campus 21300 Kuala Nerus, Terengganu MALAYSIA.)

Abstract

The paper evaluates the influence of institutional quality on human development in 14 developing countries using data over 1991-2019. We employed the Dynamic Common Correlated Effect method that accounts for heterogeneity and cross-sectional dependency associated with panel data, due to unobserved common factors. The findings revealed the evidence of positive and statistically significant long run effect of institutional quality on human development. In addition, financial development was found to promote human development whereas higher military expenditure negatively affected it in the long run. The results suggest that institutional quality promotes long run human development. Policymakers should nurture and develop institutions that have good quality such as deterring corruption, improving quality regulation and the application of the rule of law.

Suggested Citation

  • Kamalu, Kabiru & Wan Ibrahim, Wan Hakimah, 2022. "The Influence of Institutional Quality on Human Development: Evidence from Developing Countries," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 56(1), pages 93-105.
    • Handle: RePEc:ukm:jlekon:v:56:y:2022:i:1:p:93-105
    DOI: http://dx.doi.org/10.17576/JEM-2022-5601-07
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    References listed on IDEAS

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    Cited by:

    1. Kabiru Kamalu & Wan Hakimah Binti Wan Ibrahim, 2023. "Conditional Effect of Environmental Degradation and Institutional Environment on Human Development in Developing Countries: Evidence from Method of the Moment-Quantile Regression with Fixed Effect," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 667-677, September.
    2. Md. Golam Kibria & M. M. K. Toufique, 2023. "Institutional governance and quality of life: evidence from developing countries," SN Business & Economics, Springer, vol. 3(3), pages 1-20, March.

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    More about this item

    Keywords

    Institutional quality; cross-sectional dependency; developing countries; dynamic common correlated effect; human development;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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