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Institutional governance and quality of life: evidence from developing countries

Author

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  • Md. Golam Kibria

    (Noakhali Science and Technology University)

  • M. M. K. Toufique

    (Noakhali Science and Technology University)

Abstract

This paper fills a significant literature gap by examining the nexus between institutional governance and quality of life. We construct a panel data set of 21 developing countries and use the methods of linear and nonlinear autoregressive distributed lag models (ARDL). To measure the level of institutional quality, we use the World Governance Indicators developed by Kaufmann D, Kraay A, Mastruzzi M (World Bank Policy Research Working Paper, 2010). The worldwide governance indicators methodology and analytical issues. World Bank Policy Research Working Paper 5430. The results of the linear model show that improvements in indicators of institutional quality such as voice and accountability, quality of regulation and rule of law have a positive long-term impact on quality of life. In addition, the findings of the non-linear ARDL model show that positive shocks in the areas of voice and accountability, political stability, government effectiveness, regulatory quality, control of corruption and rule of law have a significant positive influence on long-term quality of life. In contrast, negative fluctuations in institutional quality indices, with the exception of voice and accountability and rule of law, have quality of life implications.

Suggested Citation

  • Md. Golam Kibria & M. M. K. Toufique, 2023. "Institutional governance and quality of life: evidence from developing countries," SN Business & Economics, Springer, vol. 3(3), pages 1-20, March.
    • Handle: RePEc:spr:snbeco:v:3:y:2023:i:3:d:10.1007_s43546-023-00458-9
    DOI: 10.1007/s43546-023-00458-9
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    More about this item

    Keywords

    Quality of life; Institutional governance; Panel non-linear ARDL model;
    All these keywords.

    JEL classification:

    • K00 - Law and Economics - - General - - - General (including Data Sources and Description)
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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