Institutional Quality and Education Quality in Developing Countries: Effects and Transmission Channels

2022 ◽  
Author(s):  
Benjamin Kamga Fomba ◽  
Dieu Ne Dort Fokam Talla ◽  
Paul Ningaye
Keyword(s):  
Developing Countries ◽  
Institutional Quality ◽  
Education Quality ◽  
Transmission Channels

scholarly journals Effect of Institutional Quality and Wealth from Oil Revenue on Economic Growth in Oil-Exporting Developing Countries

2019 ◽  
Vol 11 (13) ◽  
pp. 3635 ◽  
Author(s):  
Adewale Samuel Hassan ◽  
Daniel Francois Meyer ◽  
Sebastian Kot
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Institutional Quality ◽  
Linear Interaction ◽  
Distributed Lag ◽  
Oil Revenue ◽  
Long Run ◽  
Negative Effect ◽  
Short Run ◽  
Oil Wealth

This article investigates the role of institutional quality in the oil wealth–economic growth nexus for 35 oil-exporting developing countries between 1984 and 2016. To achieve this objective, an empirical model was employed with linear interaction between oil wealth and institutional quality, and estimated by means of panel autoregressive distributed lag (ARDL) with a dynamic fixed effect estimator. From the results, a contingent effect of oil wealth on economic growth, both in the long run and in the short run, was established. Specifically, institutional quality was found to mitigate the negative effect of oil wealth on economic growth in the long run, while in the short run, institutional quality was found to enhance the positive effect of oil wealth on economic growth. Furthermore, the results provide the threshold levels of institutional quality, beyond which oil wealth enhances economic growth, both in the long run and in the short run, for the sampled countries. These results suggest that in order for oil-exporting developing countries to benefit from an increase in oil wealth, they must adopt appropriate policy measures to improve their levels of institutional quality and embed their entire oil wealth-generating mechanism in a sound institutional framework. Also of importance is that governments must ensure sustainable development through the benefits of wealth from oil.

scholarly journals A New Motivation for Sustainable Trade Between Countries with Different Regulatory Qualities

2019 ◽  
Vol 12 (1) ◽  
pp. 209
Author(s):  
Wenshou Yan ◽  
Xi Yang
Keyword(s):  
Developing Countries ◽  
Institutional Quality ◽  
Estimation Methods ◽  
Negative Effects ◽  
Government Institutions ◽  
Regulatory Quality ◽  
Government Quality ◽  
Large Panel ◽  
Trade Partner ◽  
Sustainable Trade

In the context of rising anti-globalization sentiments, countries tend to trade with superior government institutions for a longer period and with a higher volume of exports. This phenomenon hinders sustainable trade between countries with different regulatory qualities, resulting in negative effects for developing countries that have poor institutional quality. Using a large panel dataset covering 192 countries during the period 1996–2017, this paper investigates the effect of relatively better government quality on exports. This quality is measured by said government’s regulatory quality relative to its trade partner. The empirical results indicate that a country with relatively better institutional quality receives at least 4% higher exports (dubbed as a premium gain), keeping other factors constant. The empirical result remains the same when solving the endogeneity issue and when applying alternative estimation methods. This paper thus proposes a new channel for sustainable trade for countries characterized by different institutional qualities.

Impact of remittances on economic performance in consideration of institutional quality

2020 ◽  
Vol 47 (3) ◽  
pp. 479-507
Author(s):  
Surya Nepal ◽  
Sae Woon Park ◽  
Sunhae Lee
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
South Asia ◽  
Central Asia ◽  
Financial Development ◽  
Economic Performance ◽  
Institutional Quality ◽  
Content Type ◽  
The Impact ◽  
Asian Developing Countries

PurposeThe purpose of this paper is to empirically assess the impact of remittances on the economic performance of the 16 Asian developing countries, taking account of their institutional qualities.Design/methodology/approachA panel of 16 Asian developing countries (Central Asia, South Asia, and ASEAN) over the period of 2002–2016 is employed in the analysis. To assess the impact of remittances on economic performance in consideration of institutional quality, OLS estimates as well as GMM are used.FindingsThe effect of remittances on economic growth is statistically significant. In addition, they also impact economic growth when they interact with institutional or financial development variables. For the long-run growth process of Central Asian, South Asian, and ASEAN countries, a sound and smooth institutional framework appears to be indispensable. Also, it was found that more fragile economies tend to achieve bigger growth than less fragile economies, as this kind of growth is triggered by more remittances flowing into fragile economies. However, the impact of remittances on growth does not depend on the level of ICT. FDI and financial development have positive impact on growth.Research limitations/implicationsThere are limitations to this research as well. Due to the unavailability of data, several countries had to be removed from this study. The cost of sending money might be an important variable for this study. However, the data on this variable from reliable sources are almost impossible to gather. Therefore, this variable is also not included in this research. The savings from remittances when intermediated through formal financial channels will, in fact, produce a positive allocation and distribution of resources that may eventually become an important source of growth. However, one precondition for larger and greater growth is that remittances need to be well and properly utilized by the financial sector. Therefore, quality institutions should be formed first, which can facilitate investment activities and make the flow of remittances more convenient.Originality/valueThis paper exclusively considers the case of Asian developing countries (Central Asia, South Asia, and ASEAN) to assess the impact of remittances on the economic performance of these countries, with special consideration of the interaction effects of remittances and institutional quality in these emerging Asian economies. The previous studies on the effect of remittances on growth do not conform to one concrete conclusion. This study is undertaken in a bid to get the best possible result on the impact of remittances on the growth of the selected countries, majority of which attract substantial chunk of remittances into their economies.

The Effect of Institutional Quality on FDI Inflow: Evidence from Developing Countries of South-East Asia

2020 ◽  
Vol 16 (1) ◽  
pp. 231-251
Author(s):  
Byoung-Gak Kim ◽  
Sae-Woon Park ◽  
Sun-Hae Lee
Keyword(s):  
Developing Countries ◽  
East Asia ◽  
Institutional Quality ◽  
South East Asia

scholarly journals IMPACT OF REMITTANCES ON PRIVATE SECTOR CREDIT IN THE PACIFIC ISLAND COUNTRIES

2020 ◽  
Vol 23 ◽  
pp. 13-32 ◽  
Author(s):  
Hong Chen ◽  
Shamal Chand ◽  
Baljeet Singh
Keyword(s):  
Developing Countries ◽  
Private Sector ◽  
Price Index ◽  
Consumer Price Index ◽  
Institutional Quality ◽  
Pacific Island ◽  
Capita Gross Domestic Product ◽  
Bank Branches ◽  
The Pacific ◽  
Per Capita

We examine the effect of remittances on private sector credit in the Pacific Islandcountries (PICs) using the data from 58 developing countries from 2004 to 2016. Theanalysis provides strong evidence that the effect of remittance inflows on privatesector credit for PICs is positive and higher than that for other developing countries.In addition, the per capita gross domestic product, official development assistance,the number of bank branches, and institutional quality are also positively associatedwith private sector credit in PICs, while the Consumer Price Index is negativelyassociated with private sector credit. These results have important implications for thedevelopment of financial sector in PICs.

scholarly journals The Effects of Corruption on Foreign Investments in Developed and Developing Countries

2020 ◽  
Vol 16 ◽  
pp. 29-42
Author(s):  
Romerito da Silva Oliveira ◽  
Arilda Teixeira
Keyword(s):  
Developing Countries ◽  
Direct Investment ◽  
Institutional Quality ◽  
Secondary Data ◽  
Capital Inflow ◽  
Foreign Investments ◽  
Developed Country ◽  
Economic Commission ◽  
The Caribbean ◽  
Descriptive Survey

This paper aimed to identify which elements related to the corruption impact the Foreign Direct Investment (FDI) regarding developed and developing countries. In order to achieve this purpose, the member countries of the Economic Commission for Latin America and the Caribbean (ECLAC) and the Organisation for Economic Co-operation and Development (OECD) were analysed. It was a quantitative and descriptive survey, with a sample of 78 countries and secondary data from 2012 to 2017. The results were estimated by Logistic Regression and Multiple Linear Regression, with Random Effects (RA), chosen by the Breusch-Pagan (1980) and Hausman (1978) tests. It was suggested that the corruption does not impact the inflow of FDI; however, being a developed country, with positive Gross Domestic Product (GDP) growth rates, and institutional quality, have positive impacts on the inflow of the FDI. Moreover, it showed that it is possible to accept, with 95% confidence, the following statement, the more developed a country is, the smaller its Capital inflow of FDI.

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