IDEAS home Printed from https://ideas.repec.org/p/agd/wpaper/15-041.html
   My bibliography  Save this paper

On the Empirics of Institutions and Quality of Growth: Evidence for Developing Countries

Author

Listed:
  • Simplice Asongu

    (Yaoundé/Cameroun)

  • Oasis Kodila-Tedika

    (University of Kinshasa)

Abstract

We explore a newly available dataset on quality of growth to investigate the effect of institutions on growth quality in 93 developing countries for the period 1990 to 2011. Quality of institutions is measured in term of political risk. The empirical evidence is based on: (i) Ordinary Least Squares (OLS) and Two Stage Least Squares (2SLS) and (ii) cross-sectional and panel data structures. In order to avail room for more policy implications, the dataset is further disaggregated into income levels, namely: Lower middle income (LMIC), low income (LI) and upper middle income (UMIC). Three main findings are established. First, institutions are positively related to the quality of growth. Second, institutions have significantly contributed to growth quality in increasing order during the following time intervals: 2005-2011, 1995-1999 and 2000-2004. Third, the positive nexus between institutions and growth quality is fundamentally driven by LMIC. Policy implications are discussed.

Suggested Citation

  • Simplice Asongu & Oasis Kodila-Tedika, 2015. "On the Empirics of Institutions and Quality of Growth: Evidence for Developing Countries," Working Papers of the African Governance and Development Institute. 15/041, African Governance and Development Institute..
  • Handle: RePEc:agd:wpaper:15/041
    as

    Download full text from publisher

    File URL: http://www.afridev.org/RePEc/agd/agd-wpaper/On-the-Empirics-of-Institutions-and-Quality-of-Growth.pdf
    File Function: Revised version, 2015
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Simplice A. Asongu & Oasis Kodila†Tedika, 2017. "Is Poverty in the African DNA (Gene)?," South African Journal of Economics, Economic Society of South Africa, vol. 85(4), pages 533-552, December.
    2. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 222-279, April.
    3. Simplice A Asongu, 2014. "On the substitution of institutions and finance in investment," Economics Bulletin, AccessEcon, vol. 34(3), pages 1557-1574.
    4. Anyanwu, John C., 2014. "Determining the correlates of poverty for inclusive growth in Africa," European Economic Letters, European Economics Letters Group, vol. 3(1), pages 12-17.
    5. François Bourguignon & Christian Morrisson, 2002. "Inequality Among World Citizens: 1820-1992," American Economic Review, American Economic Association, vol. 92(4), pages 727-744, September.
    6. Kraay, Aart, 2004. "When is growth pro-poor? Cross-country evidence," Policy Research Working Paper Series 3225, The World Bank.
    7. John Anyanwu & Darline Augustine, 2013. "Gender Equality in Employment in Africa: Empirical Analysis and Policy Implications," African Development Review, African Development Bank, vol. 25(4), pages 400-420.
    8. Augustin Kwasi Fosu, 2010. "Inequality, Income, and Poverty: Comparative Global Evidence," Social Science Quarterly, Southwestern Social Science Association, vol. 91(5), pages 1432-1446, December.
    9. Simplice A. Asongu & Uchenna R. Efobi & Ibukun Beecroft, 2015. "FDI, Aid, Terrorism: Conditional Threshold Evidence from Developing Countries," Research Africa Network Working Papers 15/019, Research Africa Network (RAN).
    10. Augustin Kwasi Fosu, 2010. "Inequality, Income, and Poverty: Comparative Global Evidence," Social Science Quarterly, Southwestern Social Science Association, vol. 91(s1), pages 1432-1446.
    11. Daron Acemoglu & Simon Johnson, 2005. "Unbundling Institutions," Journal of Political Economy, University of Chicago Press, vol. 113(5), pages 949-995, October.
    12. Fosu, Augustin Kwasi, 2010. "Does inequality constrain poverty reduction programs? Evidence from Africa," Journal of Policy Modeling, Elsevier, vol. 32(6), pages 818-827, November.
    13. Simplice A. Asongu, 2013. "Investment And Inequality In Africa: Which Financial Channels Are Good For The Poor?," The African Finance Journal, Africagrowth Institute, vol. 15(2), pages 43-65.
    14. Abdi Ali, 2013. "Are property rights institutions and financial development complements or substitutes? The case of private investment," Economics Bulletin, AccessEcon, vol. 33(2), pages 1126-1131.
    15. Fosu, Augustin Kwasi, 2017. "Growth, inequality, and poverty reduction in developing countries: Recent global evidence," Research in Economics, Elsevier, vol. 71(2), pages 306-336.
    16. Montfort Mlachila & René Tapsoba & Sampawende J. A. Tapsoba, 2017. "A Quality of Growth Index for Developing Countries: A Proposal," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(2), pages 675-710, November.
    17. Augustin Kwasi Fosu, 2015. "Growth, Inequality and Poverty in Sub-Saharan Africa: Recent Progress in a Global Context," Oxford Development Studies, Taylor & Francis Journals, vol. 43(1), pages 44-59, March.
    18. Klasen, Stephan, 2008. "Economic Growth and Poverty Reduction: Measurement Issues using Income and Non-Income Indicators," World Development, Elsevier, vol. 36(3), pages 420-445, March.
    19. Aart Kraay, 2004. "When is Growth Pro-Poor? Cross-Country Evidence," IMF Working Papers 2004/047, International Monetary Fund.
    20. Simplice Asongu, 2016. "Reinventing Foreign Aid For Inclusive And Sustainable Development: Kuznets, Piketty And The Great Policy Reversal," Journal of Economic Surveys, Wiley Blackwell, vol. 30(4), pages 736-755, September.
    21. Jacob Wanjala Musila & Simon Pierre Sigué, 2010. "Corruption and International Trade: An Empirical Investigation of African Countries," The World Economy, Wiley Blackwell, vol. 33(1), pages 129-146, January.
    22. Simplice Asongu, 2014. "The Questionable Economics of Development Assistance in Africa: Hot-Fresh Evidence, 1996–2010," The Review of Black Political Economy, Springer;National Economic Association, vol. 41(4), pages 455-480, December.
    23. Simplice Asongu & Oasis Kodila-Tedika, 2017. "Trade, aid and terror," International Journal of Development Issues, Emerald Group Publishing, vol. 16(1), pages 2-24, April.
    24. Uchenna R. Efobi & Simplice A. Asongu & Ibukun Beecroft, 2015. "Foreign Direct Investment, Aid and Terrorism: Empirical Insight Conditioned on Corruption Control," Research Africa Network Working Papers 15/007, Research Africa Network (RAN).
    25. Rahul Anand & Mr. Saurabh Mishra & Mr. Nikola Spatafora, 2012. "Structural Transformation and the sophistication of Production," IMF Working Papers 2012/059, International Monetary Fund.
    26. Dulani Seneviratne & Ms. Yan M Sun, 2013. "Infrastructure and Income Distribution in ASEAN-5: What are the Links?," IMF Working Papers 2013/041, International Monetary Fund.
    27. Simplice A. Asongu & Lieven De Moor, 2015. "Recent advances in finance for inclusive development: a survey," Research Africa Network Working Papers 15/005, Research Africa Network (RAN).
    28. Isaac Kalonda-Kanyama & Oasis Kodila-Tedika, 2012. "Quality of Institutions: Does Intelligence Matter?," Working Papers 308, Economic Research Southern Africa.
    29. Nanak Kakwani & Shahid Khandker & Hyun H. Son, 2004. "Pro-poor growth: concepts and measurement with country case studies," Working Papers 1, International Policy Centre for Inclusive Growth.
    30. Uchenna Efobi, 2015. "Politicians’ Attributes and Institutional Quality in Africa: A Focus on Corruption," Journal of Economic Issues, Taylor & Francis Journals, vol. 49(3), pages 787-813, July.
    31. Pernia, Ernesto & Kakwani, Nanak, 2000. "What is Pro-poor Growth?," MPRA Paper 104987, University Library of Munich, Germany.
    32. Mina Baliamoune-Lutz & Mark McGillivray, 2009. "Does Gender Inequality Reduce Growth in Sub-Saharan Africa and Arab Countries?," African Development Review, African Development Bank, vol. 21(2), pages 224-242.
    33. repec:hrv:faseco:30747160 is not listed on IDEAS
    34. Jean-Yves Duclos, 2009. "What is “Pro-Poor”?," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 32(1), pages 37-58, January.
    35. John C. Anyanwu, 2014. "Marital Status, Household Size and Poverty in Nigeria: Evidence from the 2009/2010 Survey Data," African Development Review, African Development Bank, vol. 26(1), pages 118-137, March.
    36. Stewart, Frances & Streeten, Paul, 1971. "Conflicts between Output and Employment Objectives in Developing Countries," Oxford Economic Papers, Oxford University Press, vol. 23(2), pages 145-168, July.
    37. Voxi Heinrich AMAVILAH, 2016. "Social Obstacles to Technology, Technological Change, and the Economic Growth of African Countries: Some Anecdotal Evidence from Economic History," Turkish Economic Review, KSP Journals, vol. 3(2), pages 320-340, June.
    38. Augustin Kwasi Fosu, 2010. "Inequality, Income, and Poverty: Comparative Global Evidence," Social Science Quarterly, Southwestern Social Science Association, vol. 91(5), pages 1432-1446, December.
    39. Mishra, Saurabh & Lundstrom, Susanna & Anand, Rahul, 2011. "Service export sophistication and economic growth," Policy Research Working Paper Series 5606, The World Bank.
    40. Mina Baliamoune-Lutz, 2007. "Globalisation and Gender Inequality: Is Africa Different?," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 16(2), pages 301-348, March.
    41. Hannu Tanninen, 1999. "Income inequality, government expenditures and growth," Applied Economics, Taylor & Francis Journals, vol. 31(9), pages 1109-1117.
    42. Fosu, Augustin Kwasi, 2017. "Growth, inequality, and poverty reduction in developing countries: Recent global evidence," Research in Economics, Elsevier, vol. 71(2), pages 306-336.
    43. Mr. Shanaka J Peiris & Rahul Anand & Mr. Saurabh Mishra, 2013. "Inclusive Growth: Measurement and Determinants," IMF Working Papers 2013/135, International Monetary Fund.
    44. John C. Anyanwu, 2013. "The correlates of poverty in Nigeria and policy implications," African Journal of Economic and Sustainable Development, Inderscience Enterprises Ltd, vol. 2(1), pages 23-52.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Simplice Asongu & Jacinta C. Nwachukwu, 2016. "Transfer Mispricing as an Argument for Corporate Social Responsibility," Working Papers of the African Governance and Development Institute. 16/031, African Governance and Development Institute..

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Asongu, Simplice, 2015. "Welfare Spending and Quality of Growth in Developing Countries: Evidence from Hopefuls, Contenders and Best Performers," MPRA Paper 68312, University Library of Munich, Germany.
    2. Asongu, Simplice & Nwachukwu, Jacinta C., 2015. "Finance and Inclusive Human Development: Evidence from Africa," MPRA Paper 71787, University Library of Munich, Germany.
    3. Asongu, Simplice A. & Nwachukwu, Jacinta C., 2017. "Quality of Growth Empirics: Comparative gaps, benchmarking and policy syndromes," Journal of Policy Modeling, Elsevier, vol. 39(5), pages 861-882.
    4. Simplice A. Asongu & Ivo J. Leke, 2019. "External flows and inclusive human development in Sub-Saharan Africa," International Journal of Happiness and Development, Inderscience Enterprises Ltd, vol. 5(1), pages 33-56.
    5. Asongu, Simplice & Asongu, Ndemaze, 2017. "Comparative Determinants of Quality of Growth in Developing Countries," MPRA Paper 80650, University Library of Munich, Germany.
    6. Simplice Asongu & Vanessa Tchamyou, 2015. "Inequality, Finance and Pro-Poor Investment in Africa," Working Papers of the African Governance and Development Institute. 15/052, African Governance and Development Institute..
    7. Simplice A. Asongu & Rexon T. Nting, 2021. "The role of finance in inclusive human development in Africa revisited," Working Papers 21/006, European Xtramile Centre of African Studies (EXCAS).
    8. Simplice A. Asongu & Lieven De Moor, 2015. "Recent advances in finance for inclusive development: a survey," Research Africa Network Working Papers 15/005, Research Africa Network (RAN).
    9. Simplice Asongu & Nicholas Odhiambo, 2017. "Mobile banking usage, quality of growth, inequality and poverty in developing countries," Working Papers of the African Governance and Development Institute. 17/046, African Governance and Development Institute..
    10. Simplice A. Asongu & Jacinta C. Nwachukwu, 2017. "The Comparative Inclusive Human Development of Globalisation in Africa," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(3), pages 1027-1050, December.
    11. Simplice Asongu, 2016. "Reinventing Foreign Aid For Inclusive And Sustainable Development: Kuznets, Piketty And The Great Policy Reversal," Journal of Economic Surveys, Wiley Blackwell, vol. 30(4), pages 736-755, September.
    12. Simplice Asongu, 2015. "Rational Asymmetric Development: Transfer Mispricing and Sub-Saharan Africa’s Extreme Poverty Tragedy," Working Papers of the African Governance and Development Institute. 15/054, African Governance and Development Institute., revised Aug 2015.
    13. Simplice Asongu & Nicholas Odhiambo, 2018. "Human development thresholds for inclusive mobile banking in developing countries," Working Papers of the African Governance and Development Institute. 18/022, African Governance and Development Institute..
    14. Asongu, Simplice, 2014. "Reinventing foreign aid for inclusive and sustainable development: a survey," MPRA Paper 65300, University Library of Munich, Germany.
    15. Simplice A. Asongu & Jacinta C. Nwachukwu, 2018. "Recent finance advances in information technology for inclusive development: a systematic review," Netnomics, Springer, vol. 19(1), pages 65-93, October.
    16. Simplice Asongu, 2015. "Rational Asymmetric Development: Transfer Pricing and Sub-Saharan Africa’s Extreme Poverty Tragedy," Working Papers of the African Governance and Development Institute. 15/017, African Governance and Development Institute..
    17. Asongu, Simplice & Nwachukwu, Jacinta, 2017. "Comparative human development thresholds for absolute and relative pro-poor mobile banking in developing countries," MPRA Paper 79636, University Library of Munich, Germany.
    18. Simplice A. Asongu & Jacinta C. Nwachukwu, 2017. "Recent finance advances in information technology for inclusive development: a survey," Research Africa Network Working Papers 17/009, Research Africa Network (RAN).
    19. Kazeem B. Ajide & Olorunfemi Y. Alimi & Simplice A. Asongu, 2019. "Ethnic Diversity and Inequality in Sub-Saharan Africa: Do Institutions Reduce the Noise?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(3), pages 1033-1062, October.
    20. Simplice A. Asongu & Nicholas M. Odhiambo, 2021. "Income Levels, Governance and Inclusive Human Development in Sub-Saharan Africa," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 16(1), pages 71-103, February.

    More about this item

    Keywords

    Quality of growth; Institutions; Social indicators;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • I10 - Health, Education, and Welfare - - Health - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:agd:wpaper:15/041. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/agdiycm.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Asongu Simplice (email available below). General contact details of provider: https://edirc.repec.org/data/agdiycm.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.