The Effect of FDI on the Convergence of Economic Growth Through the Prospective of Institutional Quality in GCC Countries

2019 ◽  
Author(s):  
wahib elayah ◽  
hu wen ◽  
Si Thu Han
Keyword(s):  
Economic Growth ◽  
Institutional Quality ◽  
Gcc Countries

Institutional Quality and Trade Flow: Empirical Evidence from Malaysia and Other OIC Member Countries in Africa

2021 ◽  
pp. 097508782098717
Author(s):  
Hammed Agboola Yusuf ◽  
Luqman Olanrewaju Afolabi ◽  
Waliu Olawale Shittu ◽  
Kafilah Lola Gold ◽  
Murtala Muhammad
Keyword(s):  
Economic Growth ◽  
Bilateral Trade ◽  
Trade Flow ◽  
Estimation Method ◽  
Institutional Quality ◽  
Likelihood Estimation ◽  
Political Stability ◽  
Bilateral Trade Flow ◽  
World Governance Indicators ◽  
The Impact

This article examines the impact of institutional quality on bilateral trade flow between Malaysia and selected 25 African Organisation of Islamic Cooperation (OIC) member countries. Four institutional qualities were selected from World Governance Indicators with other trade predictors from the period from 1985 to 2016. Using gravity model of trade and Poisson pseudo-maximum likelihood estimation method (PPML) technique, the results confirm that government effectiveness, regulatory quality and political stability have an adverse effect on bilateral trade flow among the OIC countries in Africa. On the other hand, these institutional quality variables were considered as a strength for Malaysian economic growth. Therefore, better institutional quality reforms are needed among OIC member countries in Africa in order to accelerate trade, economic growth and development in their region.

scholarly journals Sustainable Utilization of Financial and Institutional Resources in Reducing Income Inequality and Poverty

2021 ◽  
Vol 13 (3) ◽  
pp. 1038
Author(s):  
Atta Ullah ◽  
Zhao Kui ◽  
Saif Ullah ◽  
Chen Pinglu ◽  
Saba Khan
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Financial Development ◽  
Institutional Quality ◽  
Vital Role ◽  
Electronic Government ◽  
Sustainable Utilization ◽  
One Belt One Road ◽  
Institutional Resources ◽  
Belt And Road

This study aims to determine the role of globalization, electronic government, financial development, concerning the moderation of institutional quality in reducing income inequality and poverty in One Belt One Road countries. The electronic government and regional integration of the economies of the One Belt One Road countries has increased globalization and can play a vital role in reducing income inequality and poverty. However, this globalization and digital transformation of government systems can only be beneficial in the presence of good institutional quality. The sample includes 64 One Belt One Road countries from 2003 to 2018. We employed a two-step system generalized method of moment (Sys-GMM) and a robustness check through Driscoll–Kraay standard errors regression. Our findings show that globalization, economic growth, e-government development, government expenditure, and inflation have a statistically significant and negative impact on income inequality and are key to eradicating income inequality and poverty. On the other hand, financial development, gross capital formation, and population size positively influence income inequality, which causes an increase in poverty and income inequality as financial development and population levels increase. Moderating variable institutional quality also positively impacts income inequality, which means that institutional quality in Belt and Road Countries is weak, as they are mostly developing countries that need to improve their systems. Moreover, the marginal effect also revealed that institutional quality has a corrective effect on the factors’ relationship with income inequality. Our findings endorse and conclude that globalization and e-government development improve economic growth and eradicate poverty and income inequality by boosting digitalization, investments, job creation, and wage increases for semi-skilled and unskilled human capital in Belt and Road countries. The sustainable utilization of financial and institutional resources plays a vital role in reducing income inequality and poverty in Belt and Road countries.

Bridging the digital divide through ICT

2013 ◽  
Vol 30 (4) ◽  
pp. 358-365 ◽  
Author(s):  
Adboulaye Kaba ◽  
Raed Said
Keyword(s):  
Economic Growth ◽  
Information Technology ◽  
Digital Divide ◽  
Significant Relationship ◽  
Gulf Cooperation Council ◽  
Arab Countries ◽  
Government Support ◽  
Global Information ◽  
Gcc Countries ◽  
Ict Infrastructure

Bridging the gap of the digital divide can play an important role in education, employment and economic growth of any country. The present study attempts to examine and analyze the digital divide status of the Gulf Cooperation Council (GCC) countries compared with countries of the Association of Southeast Asian Nations (ASEAN) and other Arab countries. It uses 19 indicators of four factors adapted from The Global Information Technology Report 2009–2010 to measure the digital divide. Findings of the study indicated that GCC countries have a better ICT infrastructure than the ASEAN and other Arab countries. Similarly, the results of the study revealed that GCC nations have more ICT users than the ASEAN and other Arab countries. However, the study found no significant differences among these groups of countries in regard to government support and usage of ICT. Findings of the Analysis of Variance (ANOVA) show that, across the three groups of countries, the influence of ICT infrastructure is consistently significant in narrowing the digital divide. The regression results also prove a significant relationship between government support for ICT and government usage of ICT.

scholarly journals INSTITUTIONAL QUALITY AND ECONOMIC GROWTH IN JORDAN: NEW EVIDENCE USING AN AUTOREGRESSIVE DISTRIBUTED LAG (ARDL) MODEL

2021 ◽  
Vol 16 (3) ◽  
pp. 204-219
Author(s):  
ZULKEFLY ABDUL KARIM ◽  
◽  
MOHAMMAD QASIM ALABED QUSAI ◽  
FATHIN FAIZAH SAID ◽  
MOHD AZLAN SHAH ZAIDI
Keyword(s):  
Economic Growth ◽  
Institutional Quality ◽  
Ardl Model ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
New Evidence

Foreign Direct Investment and Growth Symbiosis: A Semiparametric System of Simultaneous Equations Analysis

2017 ◽  
Vol 7 (1) ◽  
Author(s):  
Nadine McCloud ◽  
Michael S. Delgado ◽  
Subal C. Kumbhakar
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Panel Data ◽  
Direct Investment ◽  
Developing Economies ◽  
Institutional Quality ◽  
Simultaneous Equations ◽  
Asymptotically Normal ◽  
Methodological Tool

AbstractWe characterize the types of interactions between foreign direct investment (FDI) and economic growth, and analyze the effect of institutional quality on such interactions. To do this analysis, we develop a class of instrument-based semiparametric system of simultaneous equations estimators for panel data and prove that our estimators are consistent and asymptotically normal. Our new methodological tool suggests that across developed and developing economies, causal, heterogeneous symbiosis and commensalism are the most dominant types of interactions between FDI and economic growth. Higher institutional quality facilitates, impedes or has no effect on the interactions between FDI and economic growth.

Institutional Change and Economic Growth in East Asia after the Asian Financial Crisis, 1997-98

2020 ◽  
Vol 35 (1) ◽  
pp. 29-51
Author(s):  
Kee Hoon Chung
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Institutional Change ◽  
East Asia ◽  
Fixed Effects ◽  
Panel Data Analysis ◽  
Institutional Quality ◽  
Asian Financial Crisis ◽  
Fixed Effects Model ◽  
The World

Theories on institutional change assert that exogenous shocks are critical in transforming path-dependent institutions. There is not much empiric research, however, that has investigated whether that is indeed the case. To fill this gap, this study investigates the effects of institutional quality on economic growth with a focus on East Asia before and after the 1997-98 Asian financial crisis, which delivered a critical shock in economic activities and institutions in East Asia. Using panel data analysis from 1981 and 2007, I investigate whether the effect of institutional quality on economic growth differed in East Asia compared to rest of the world before the crisis and whether such relationship changed after the crisis. Using two-way fixed effects model, the estimation shows that the effect of institutional quality on economic growth was positive on average for the rest of the world after the crisis but negative for East Asia. The negative coefficient was particularly strong for the three countries—South Korea, Indonesia, and Thailand—that suffered the most during the crisis. However, in the long term, there was no significant change of this negative effect.

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