Role of institutional quality in economic development: A case study of Asian countries

Problems and Perspectives in Management

Anh Hong Viet Nguyen¹  Oanh Kim Thi Tran²  Hac Dinh Le³ 

[1] Ph.D., Lecturer, Faculty of Banking and Finance, University of Finance – Marketing;Ph.D., Lecturer, Faculty of Banking and Finance, University of Finance – Marketing;Ph.D., Lecturer, Faculty of Postgraduate Education, Banking University of Ho Chi Minh City;

关键词: Asian countries;    economic growth;    institutions;    nonlinear relationship;    quantile regression;   

DOI  :  10.21511/ppm.19(2).2021.29

来源: DOAJ

【 摘 要 】

The paper investigates the impact of institutional quality on economic growth by taking 48 countries in Asia between 2005 and 2018. By using the quantile regression methods with panel data, institutional quality is found to be a key factor of economic development. However, in the lower-income Asian countries, the institution with better quality appears to promote the growth more effectively than in the higher-income ones. Moreover, the paper also finds out a nonlinear relationship between institutions and economic growth. The results show that there is an institutional threshold for economic growth to reach its highest level. If the institution indicator exceeds the threshold, it causes the reverse effect on the growth. Moreover, the economic growth of Asian countries is also affected by inflation (INF), labor force (LABO), trade openness (OPEN), and infrastructure (TELE). From that, the study suggests some policy implications for Asian countries and Vietnam, in particular, in order to improve institutions contributing to economic growth.

【 授权许可】

Unknown