Rent seeking opportunities and economic growth in transitional economies

Iqbal, Nasir; Daly, Vince

doi:10.1016/j.econmod.2013.10.025

Cited by 86 publications

(58 citation statements)

References 42 publications

(37 reference statements)

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“…To measure the impact of institutional and non-institutional arrangements on bilateral trade, a panel of eight South Asian countries was used over a period of thirty eight years, 1975-2013. 5 The panel data estimation method is considered an efficient tool for analysis, as it allows inclusion of data for different cross sections, increased sample size that leads to better estimates, controlling for variables that are not directly observable, and accounts for individual heterogeneity [Iqbal and Daly (2014); Nawaz (2015); Nawaz, Iqbal, and Khan (2015)]. The choice of eight countries in South Asian region is mainly based on the availability of data.…”

Section: Data and Estimation Strategymentioning

confidence: 99%

Pakistan’s Bilateral Trade under MFN and SAFTA: Do Institutional and Non-Institutional Arrangements Matter?

Iqbal¹,

Nawaz²

2022

pdr

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The purpose of this study is two fold. First, to estimate the impact of institutional and non-institutional arrangements on bilateral trade, and second to analyse the impact of SAFTA on bilateral trade in the short as well as in the long run. The empirical analysis which is based on the panel of eight South Asian countries, comprising data over the period i.e. 1975–2013 is conducted using fixed effects model along with Pooled Mean-Group (PMG) estimator for estimating the short and long-run relationships. The analysis has shown that trade agreements including South Asian Free Trade Area (SAFTA) and the Most Favoured Nation (MFN) are not effective in promoting trade, due to low institutional quality and stringent non-institutional arrangements, including high tariff along with low physical infrastructure. Further empirical analysis has shown that both SAFTA and MFN can only contribute to bilateral trade significantly, if complemented by institutional framework. As a policy lesson, to improve the trade ties between India and Pakistan, improvement in physical as well as soft infrastructure is required. Any trade agreements between the two, including MFN can only be effective, when it is supported by a well-defined and enforced institutional framework that ensure the implementation of policy reforms needed to reduce tariff rate and remove non-tariff barriers.

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Section: Data and Estimation Strategymentioning

confidence: 99%

Pakistan’s Bilateral Trade under MFN and SAFTA: Do Institutional and Non-Institutional Arrangements Matter?

Iqbal¹,

Nawaz²

2022

pdr

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“…It can range from bribery to nepotism and can be public as well as private. Mauro (1998Mauro ( , 1995 and Iqbal and Daly (2013) has shown the negative impact of corruption on economic growth as well as how corruption distorts the composition of government expenditure. Dzhumashev (2013) shows that the interaction between corruption and governance shapes the efficiency of public spending, which in turn, determines the growth effects of corruption.…”

Section: Introductionmentioning

confidence: 98%

The interactive impact of press freedom and media reach on corruption

Dutta

Roy

2016

Economic Modelling

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“…The panel reveals that there is a positive and 3 It is also worth noting that the specific time span over which the percentage changes in both economic globalization and real GDP growth are calculated would affect the appearance of the figure somewhat depending on the specific beginning and end year used. The available economic literature on the effect of institutions on economic growth has established a positive relationship between institutions and economic growth (Acemoglu and Robinson, 2010;Iqbal and Daly, 2014;Mauro, 1995;Rodrik et al, 2004). Sceptics of the institutional view (Sachs, 2003) emphasise the relative importance of ecology and geography over institutions in economic development.…”

Section: Panel (A) Ofmentioning

confidence: 99%

Do institutions moderate globalization's effect on growth?

Mullings

2017

Journal of Institutional Economics

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The hypothesis that institutional factors affect real economic growth has received support in both the theoretical and empirical literature. Globalization has also, though not unanimously, been found to affect growth outcomes.Bridging the gap between the two strands of the literature, this paper investigates the existence and strength of the interaction between institutional quality and globalization on real economic growth using a panel dataset covering 82 countries and spanning 25 years (1986 -2010). Dimensionality reduction techniques are employed to identify key components of 'institutional quality': rule of law, civil liberties and political rights. The empirical results reveal that while 'institutional quality' robustly and positively affects growth, the direct effect of economic globalization is not significant and the interaction effects, perhaps as a consequence, are muted over the review period. Direct and interaction effects of institutional quality and economic globalization on growth are, however, observed for the sub-sample of developing countries..

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Rent seeking opportunities and economic growth in transitional economies

Cited by 86 publications

References 42 publications

Pakistan’s Bilateral Trade under MFN and SAFTA: Do Institutional and Non-Institutional Arrangements Matter?

Pakistan’s Bilateral Trade under MFN and SAFTA: Do Institutional and Non-Institutional Arrangements Matter?

The interactive impact of press freedom and media reach on corruption

Do institutions moderate globalization's effect on growth?

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