Journal of Management and Economics Research 2148-029X 2148-029X Bandirma Onyedi Eylul University Policy and Administration (Other) Finance Politika ve Yönetim (Diğer) Finans How does Institutional Quality Affect Economic Growth? Panel Data Analysis for G20 Countries https://orcid.org/0000-0002-8726-744X Yay Serdar İZMİR DEMOKRASİ ÜNİVERSİTESİ https://orcid.org/0000-0002-4601-7567 Ezanoğlu Zeynep https://orcid.org/0000-0001-9508-0418 Akan Recep EGE ÜNİVERSİTESİ 03 24 2025 23 1 23 41 07 19 2024 11 27 2024 Copyright © 2013, Journal of Management and Economics Research 2013 Journal of Management and Economics Research

The relationship between institutional quality and economic growth has attracted considerable attention in recent years. These studies have been conducted under the umbrella of institutional economics, which has been pioneered by names, such as Douglass C. North, Nobel Prize winner in Economics. Institutional quality is defined as the effectiveness of institutions and the enforceability of rule sets. Regulatory quality is measured by indicators such as the rule of law, control of corruption, judicial independence and protection of property rights. There is an important link between institutional quality and economic growth. In the literature, institutional quality factors have a positive effect on economic growth. This study tested the relationship between institutional quality and economic growth in developing countries and concluded that institutional quality indicators positively affect economic growth.

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