Institutional infrastructure and economic growth in member countries of the Organization of Islamic Cooperation (OIC)

Slesman, Ly; Baharumshah, Ahmad Zubaidi; Ra'ees, Wahabuddin

doi:10.1016/j.econmod.2015.08.008

Cited by 88 publications

(64 citation statements)

References 63 publications

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“…Jalilian et al (2007) showed a strong causal link between regulatory quality and economic performance in developing countries. Slesman et al (2015) have verified that institutional quality has a significantly positive effect on growth in Islamic countries. The findings of Flachaire et al (2014) indicate that economic institutions have a direct impact on growth rate.…”

Section: Theoretical and Empirical Evidencementioning

confidence: 94%

The Impact of Knowledge-Based Economy on Growth Performance: Evidence from MENA Countries

2018

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The aim of this paper is to examine the empirical relationship between the knowledge-based economy and economic growth in MENA countries. We are interested in identifying pillars linked with the transition to a knowledge-based economy that is related to growth performance. We used a growth model in Barro and Sala-i-Martin framework (1995) for the period of 2010-2015. It includes a panel data set that consisted the annual economic growth rate for selected MENA countries and, within the theoretical and empirical framework, applied the four indicators used for identifying the situation of the knowledgebased economy. The empirical results obtained using the generalized method of moments dynamic panel indicates institutions, human capital and research, infrastructure, and business sophistication to be the pillars of knowledge-based economy that influence a significant and positive economic growth in MENA countries. We suggest that governments in this region should consider the knowledge-related policies for accelerating transiting to the knowledgebased economy and improving economic performance.Keywords Convergence . Dynamic panel . Generalized method of moments . Growth performance . Knowledge-based economy . MENA region J Knowl Econ https://doi.org/10.1007/s13132-018-0522-4Highlights:• We use a dynamic GMM panel model for analysis of conditional convergence in MENA region.• We assess the effects of knowledge-based economy indices on economic performance in MENA region.• The institutional structure and human capital and research have positive effects on growth performance in MENA region.• The effect of infrastructure and business sophistication on economic growth in MENA countries.

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Section: Theoretical and Empirical Evidencementioning

confidence: 94%

The Impact of Knowledge-Based Economy on Growth Performance: Evidence from MENA Countries

2018

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“…Previous value added can influence present gross value added. Its coefficient can take any sign, can be negative if there is conditional divergence and positive indicating conditional convergence (Islam (1995) and Slesman, Baharumshah and Ra'ees (2015)). NTT -It is net barter terms of trade index, which is the price ratio of exports to imports with 2000 as a base year.…”

Section: Methodology and Datamentioning

confidence: 99%

The Impact of Institutional Quality on Economic Performance: An Empirical Study of Turkey and 28 Countries in the European Union.

Siyakiya

2017

EconWorld

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Using a panel set of 28 European Union member states and 8 prospective members to the bloc over a period of 1996-2014, this paper examines to what extent institutional quality (governance index) and its sub-indicators (control over corruption, government effectiveness, political stability, regulatory quality, rule of law and voice and accountability) can influence overall economic performance measured by gross value added per capita. The paper expands on existing literature by disaggregating the growth impact of institutions for all countries in the sample, developed and less developing countries. The independent variables included in the model are gross fixed capital formation as a percentage of GDP, net barter terms of trade, government size (expenditure), quality of institution and inflation while gross value added per capita is the dependent variable. Because of the weakness of the fixed effects model, system GMM is used to estimate the coefficients. Generally, the results show a positive and significant relationship between economic performance and the quality of institution. Precisely holding other things constant, a 10 units improvement in the quality of overall institution is predicted to increase gross value added per capita by 1.33 units. Also, the impact of institutional improvements on economic performance is higher and more predominant in developed countries than in less developed. A disintegrated analysis of institutions reveals that government effectiveness and voice and accountability have positive and significant impacts on economic performance of the 36 countries. However, control over corruption and political stability and absence of violence have negative signs. Also, there is no evidence of influence of regulatory quality and rule of law on economic growth.

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“…The annual GDP and CPI of Austria, Belgium, France, Germany, and Portugal 2004 to 2012 are obtained from International Monetary Fund's International Financial Statistics. The real GDP has been used as a proxy for economic growth (Apergis and Payne 2010; Slesman et al 2015;Wang et al 2016), economic activities (McCoskey and Selden 1998;Cevik et al 2016) and productivity (Conti 2014 classified as card payment. Electronic money is the total outstanding amounts of stored monetary value on an electronic devise (server or card), at the end of the period.…”

Section: Methodsmentioning

confidence: 99%

Cashless payment and economic growth

2016

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Background: This study examines the effect of adopting cashless payment in five European Union (EU) countries, namely, Austria, Belgium, France, Germany, and Portugal, for the period of 2000-2012. Methods: The within and between effect of adopting cheque payment, telegraphic transfer, card payment and electronic money on these EU's economy are examined by applying the Pedroni residual cointergration and Panel Vector Error Correction Model (VECM). Results: There is short run causality running from cheque payment to telegraphic transfer and card payment, as well as causality running telegraphic transfer to card payment. In the long run, there is significant effect of adopting cashless payment on the economy of the five EU countries. Conclusions: The adoption of one type of cashless payment will affect another type of cashless payment in the short run. The impact of adopting cashless payment on economic growth can only be significantly observed in the long run. Hence, any policy that promotes cashless payment will not affect the economy immediately.

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Institutional infrastructure and economic growth in member countries of the Organization of Islamic Cooperation (OIC)

Cited by 88 publications

References 63 publications

The Impact of Knowledge-Based Economy on Growth Performance: Evidence from MENA Countries

The Impact of Knowledge-Based Economy on Growth Performance: Evidence from MENA Countries

The Impact of Institutional Quality on Economic Performance: An Empirical Study of Turkey and 28 Countries in the European Union.

Cashless payment and economic growth

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