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The Relationship between Institutional Structure and Economic Growth: A Comparative Analysis for Selected Countries

Author

Listed:
  • Ali Acaravci

    (Faculty of Economics and Administrative Sciences, Mustafa Kemal University, Hatay, Turkey,)

  • Sinan Erdogan

    (Faculty of Economics and Administrative Sciences, Mustafa Kemal University, Hatay, Turkey,)

Abstract

This study explores the long-run relationship between institutional structure and economic growth for selected countries for 1993-2012 period by using dynamic panel data analysis. The results can be summarized as follows: i) There exists a cross-sectional dependence for variables and models ii) All variables are stationary at their first difference except for institutional indicator of second group. iii) There exists a cointegration relationship between non-stationary variables. iv) Institutional structure has positive and statistically significant impact on economic growth in First group of countries. v) There is no significant relationship between institutional structure and economic growth in second group of countries. vi) Gross capital formation has positive impact on economic growth in both groups.

Suggested Citation

  • Ali Acaravci & Sinan Erdogan, 2017. "The Relationship between Institutional Structure and Economic Growth: A Comparative Analysis for Selected Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 7(6), pages 141-146.
    • Handle: RePEc:eco:journ1:2017-06-18
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    References listed on IDEAS

    as
    1. Barro, Robert J, 1996. "Democracy and Growth," Journal of Economic Growth, Springer, vol. 1(1), pages 1-27, March.
    2. Acemoglu, Daron & Johnson, Simon & Robinson, James & Thaicharoen, Yunyong, 2003. "Institutional causes, macroeconomic symptoms: volatility, crises and growth," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 49-123, January.
    3. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 407-443.
    4. Alesina, Alberto & Özler, Sule & Roubini, Nouriel & Swagel, Phillip, 1996. "Political Instability and Economic Growth," Journal of Economic Growth, Springer, vol. 1(2), pages 189-211, June.
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    Cited by:

    1. Matteo Rossi & Giuseppe Festa & Ardi Gunardi, 2019. "The Evolution of Public-Private Partnerships in a Comparison between Europe and Italy: Some Perspectives for the Energy Sector," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 403-413.

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    More about this item

    Keywords

    Institutional Economics; Institutional Structure; Economic Growth; Panel Data Analysis; International Country Risk Guide.;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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