Economic growth and institutions in developing countries: Panel evidence

Ahmad, Mahyudin and Marwan, Nur Fakhzan (2012): Economic growth and institutions in developing countries: Panel evidence. Forthcoming in: Proceedings of USM-AUT International Conference On Sustainable Development: Policies and Strategies (17 November 2012)

Abstract

Numerous empirical studies have documented the evidence of institutional significance towards economic growth. This study extends such evidence as it examines the link between institutions and growth in developing countries including East Asian region. By using neoclassical growth framework augmented with institutional controls and latest estimation technique in panel data analysis, this study finds evidence of positive institutions growth-effects and uncovers the channel of their effects toward growth. This study also fills the gap in the East Asian growth literature, in which, to the best of our knowledge, only two studies namely Rodrik (1997) and Campos and Nugent (1999) that document the institutional importance toward economic growth for the region and apparently these studies are for the period before the 1997 Asian Financial Crisis.

• Item Type: MPRA Paper
• Language: English
• Keywords: Institutions; economic growth; Asian Financial Crisis; dynamic panel analysis; generalized methods of moments
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O43 - Institutions and Growth; E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E13 - Neoclassical

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