INSTITUTIONAL QUALITY AND ECONOMIC GROWTH

Year 2024, Volume: 6 Issue: 1, 13 - 31, 15.05.2024

Niroj Duwal , Sunil Suwal

https://doi.org/10.46959/jeess.1466383

Abstract

Growth and development require a framework of institutions which reduces transaction costs and thereby their effectiveness, and this will reduce the poverty problem in developing countries. The paper investigated the relationship between institutional quality and economic growth in 18 Asian developing countries from 2013 to 2020 using fixed effect model. The results revealed that sound money has a positive and significant impact on economic growth whereas size of government, legal systems and property rights, foreign trade internation, and regulations were statistically insignificant. To achieve the Sustainable Development Goals, the framework provided by the General Assembly of United Nations also given higher priority of institutional quality of the countries.

Keywords

Economic Growth, Institutional Quality, Fixed Effect Model, Developing Countries

Ethical Statement

We, Niroj Duwal and Sunil Suwal, the lead author and co-author of the manucript, hereby disclose any ethical conflict. The manuscript do not hamper anyone.

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