Economic Growth, Total Factor Productivity, and Institution Quality in Low-Middle Income Countries in Asia

NGO, Minh Ngoc; Nguyen, Loc

doi:10.13106/jafeb.2020.vol7.no7.251

Cited by 25 publications

(15 citation statements)

References 34 publications

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“…In recent years there are many domestic and foreign scientific studies in this field. Nakabashi et al (2013), Alexiou et al (2014), Acemoglu et al (2014), Vianna and Mollick (2018), Salman et al (2019), Ha (2016), Ngo and Nguyen (2020) concluded that institutions have positive impacts on economic growth. However, Dias and Tebaldi (2012) and Acemoglu et al (2015) did not find a relationship between institutions and economic growth.…”

Section: Introductionmentioning

confidence: 99%

Role of institutional quality in economic development: A case study of Asian countries

Tran

Nguyen

2021

Problems and Perspectives in Management

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The paper investigates the impact of institutional quality on economic growth by taking 48 countries in Asia between 2005 and 2018. By using the quantile regression methods with panel data, institutional quality is found to be a key factor of economic development. However, in the lower-income Asian countries, the institution with better quality appears to promote the growth more effectively than in the higher-income ones. Moreover, the paper also finds out a nonlinear relationship between institutions and economic growth. The results show that there is an institutional threshold for economic growth to reach its highest level. If the institution indicator exceeds the threshold, it causes the reverse effect on the growth. Moreover, the economic growth of Asian countries is also affected by inflation (INF), labor force (LABO), trade openness (OPEN), and infrastructure (TELE). From that, the study suggests some policy implications for Asian countries and Vietnam, in particular, in order to improve institutions contributing to economic growth.

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Section: Introductionmentioning

confidence: 99%

Role of institutional quality in economic development: A case study of Asian countries

Tran

Nguyen

2021

Problems and Perspectives in Management

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“…In a study for Nigeria, Olanrewaju, Tella and Adesoye (2019) used augmented VAR to show that all the variables used in the study, except the financial inclusion index Granger-caused growth without feedback. For Asian countries, Ngo and Nguyen (2020) use the GMM to show that institutional factors do not have a positive impact on economic growth in middle-income countries.…”

Section: Empirical Literaturementioning

confidence: 99%

Examining the Roles of Institutional Quality and Financial Openness in Enhancing Economic Performance: Evidence from BRICS Countries

Nzeh

Uzoechina

Imoagwu

et al. 2022

JAREAS

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Purpose: The aim is to examine the roles of institutional quality and financial openness on the economic performance of BRICS, using annual series that covered the period from 1996 to 2020. Methods: Principal component analysis (PCA) was used to select the institutional quality variables, while analysis of the study was conducted under the panel data random effect model. Findings indicate that FDI inflows and capital account openness positively impacted on GDP per capita significantly; however the impact of FDI outflows on GDP per capita, though positive, was not significant. Moreover, control of corruption and government effectiveness both had positive and significant impact on GDP per capita, while trade openness impacted GDP per capita negatively, though the result was not significant. Findings: The outcome of the study reveals that the economy of the BRICS improved by removing restrictions on capital controls which retard capital inflows, but liberalization of trade had adverse effect on growth in the bloc. Equally revealed in the study is that effective government which reduces corrupt tendencies lead to improved economic performance. The study therefore recommends the removal of all bottlenecks that hinder FDI inflows and the building of strong institutions in BRICS. Practical Implications: With respect to the institutional variables employed in the study, findings revealed that when governance is effective, it encourages improvement in the economy. Effectiveness in governance encourages reduction in corruption which is the bane of underdevelopment in many developing countries. Originality/Value: The panel random effect results showed that of the three financial openness indicators employed, FDI inflows and capital account openness significantly impacted on GDP per capita positively, while the impact of FDI outflows was positive but negligible.

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“…Increasing productivity in individual countries by increasing the efficiency of capital, labour and other inputs is one of the appropriate solutions in the current situation. It can be seen that growth research is still the subject of interest and discussion among researchers (Ngo and Nguyen 2020). The relationship between labour productivity and economic growth was also analyzed by Rey and Hazem (2020).…”

Section: Literature Reviewmentioning

confidence: 99%

Does the instability of economic development affect the elasticity of the labour market?

Daňová

Vozárová

2021

Review of Economic Perspectives

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Despite extensive research, the estimates of changes in employment are heterogeneous in different conditions of economic development. In this study, we examined the impact of the instability of economic growth on the elasticity of the labour market in a set of EU27 member states in the period 2000Q1–2019Q4.The sensitivity of the labour market was quantified in parallel by two available methods which are used for this purpose – by calculating the values of the arc elasticity coefficient and by regression analysis. Logarithmic linear regression models were compiled according to the analysis criteria individually for each member state. By comparing the values of the obtained elasticity indicators, differences in the responses of the labour market were identified. Our results show that the heterogeneity of opinions is to some extent natural. The elasticity of the labour market determined by calculating the values of the elasticity coefficient is characterized by a high variability of values. Similarly, the values of the regression coefficient reflect the nature of the macroeconomic development of the period under review. According to our findings, the frequent short-term trends of negative economic development result in a reduced sensitivity of the labour market to the changes in economic performance, manifested by a lower employment elasticity compared to its values in economies with a stable development trend. Based on this, we formulate the connection between the elasticity of the labour market and the positive and negative economic development. We condition the sensitivity of the labour market to the changes in the trend of economic development with the occurrence of longer-lasting trends of negative economic development.

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Economic Growth, Total Factor Productivity, and Institution Quality in Low-Middle Income Countries in Asia

Cited by 25 publications

References 34 publications

Role of institutional quality in economic development: A case study of Asian countries

Role of institutional quality in economic development: A case study of Asian countries

Examining the Roles of Institutional Quality and Financial Openness in Enhancing Economic Performance: Evidence from BRICS Countries

Does the instability of economic development affect the elasticity of the labour market?

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