What Shapes Economic Growth in <scp>BRICS</scp>? Exploring the Role of Institutional Quality and Trade Openness

Chhabra, Megha; Giri, Arun Kumar; Kumar, Arya

doi:10.1111/1759-3441.12378

Cited by 13 publications

(8 citation statements)

References 48 publications

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“…Muja and Gunar (2019) observed a significant causal relationship between good governance and economic performance. In a similar study Chhabra et al (2023) observed that trade and institutions impact economic growth but only in the short run while good governance impacts on trade and economic growth in the long run. Adegboye et al (2020) observed that FDI is important for sub-Saharan African countries' economic development, but institutional quality affects the level of FDI inflow.…”

Section: Review Of Empirical Studiesmentioning

confidence: 82%

Investigating the Impact of Institutional Quality Under the Petroleum Price Deregulation Policy Regime on the Economic Growth of an Emerging Economy

Sackey,

Orkoh,

Musah

2024

Preprint

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The importance of institutional quality as a means of influencing economic growth is being given much attention. This paper examines the extent to which institutional quality under the price deregulation policy impacts GDP growth. The study employs the Bayesian linear regression and the auto regressive distributed lag (ARDL) models in estimating a quarterly data that spans from the first quarter of 2005 to the fourth quarter of 2020. We observe that petroleum prices impact positively on GDP growth but only in the long run while inflation impacts negatively on GDP growth in the short run. Again, we observe a short run positive relationship between foreign direct investment and GDP growth. While institutional quality impacts positively on GDP growth in the short run but negatively in the long run, the interactions of petroleum prices and institutional quality on the other had reduces GDP growth in the short run but tend to increase GDP growth comparatively more than the decrease in the short run suggesting that institutional quality under the price deregulation policy impacts on GDP growth in the long run.

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Section: Review Of Empirical Studiesmentioning

confidence: 82%

Investigating the Impact of Institutional Quality Under the Petroleum Price Deregulation Policy Regime on the Economic Growth of an Emerging Economy

Sackey,

Orkoh,

Musah

2024

Preprint

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“…Muja and Gunar (2019) found a strong causal link between good governance and economic performance in the Western Balkans. Chhabra et al . (2023) found that trade and institutions are only short-term complements of economic growth, with good governance being necessary for a positive long-term impact of trade openness.…”

Section: Literature Reviewmentioning

confidence: 99%

Institutional quality and economic growth in Sub-Saharan Africa: a panel data approach

Hussen

2023

JED

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PurposeThe main purpose of this study is to examine the impact of different dimensions of institutional quality indices on the economic growth of Sub-Saharan African (SSA) countries.Design/methodology/approachThe study uses a panel data set of 31 SSA countries from 1991 to 2015 and employs a two-step system-GMM (Generalized Method of Moments) estimation technique.FindingsThe study's empirical results indicate that investment-promoting and democratic and regulatory institutions have a significant positive effect on economic growth; however, once these institutions are taken into account, conflict-preventing institutions do not have a significant impact on growth.Practical implicationsThe study's findings suggest that countries in the region should continue their institutional reforms to enhance the region's economic growth. Specifically, institutions promoting investment, democracy and regulatory quality are crucial.Originality/valueUnlike previous studies that either use composite measures of institutions or a single intuitional indicator in isolation, the present study has employed principal component analysis (PCA) to extract fewer institutional indicators from multivariate institutional indices. Thus, this paper provides important insights into the distinct role of different clusters of institutions in economic growth.

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“…The results demonstrate that freer trade promotes investment and development. Two trade policies that affect economic growth are the real effective exchange rate and the average weighted tariff rate (Chhabra et al, 2023). Kim (2011) demonstrates that industrialized nations benefit from openness to trade in terms of economic growth and real income whereas underdeveloped countries suffer from it.…”

Section: Exchange Rate and Debt Sustainabilitymentioning

confidence: 99%

Uganda’s Debt Sustainability: Testing The Efficacy of Debt Overhang Theory

Musiita,

Kijjambu,

Katarangi

et al. 2023

JEBS

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The primary objective of this paper is to discern the impact of key economic variables, including primary balance, real interest rate, GDP growth rate, real effective exchange rate, and current account balance, on the long-term and short-term sustainability of the country's debt. Drawing on an array of econometric analyses within the Auto Regressive Distributed Lag framework, the study establishes that a fiscal surplus and sound management positively influence debt sustainability in the long run. However, it reveals that higher real interest rates pose challenges, leading to increased debt loads. While GDP growth's impact remains inconclusive, a fluctuating real effective exchange rate and the influence of the current account balance on debt dynamics emerge as crucial determinants. The study recommends a cautious fiscal approach, interest rate management, economic growth stimulation, exchange rate stability, and a focus on achieving and maintaining current account surpluses as pivotal strategies for ensuring Uganda's long-term debt sustainability. Nonetheless, the study acknowledges limitations related to sample size and endogeneity, encouraging further research to enhance generalizability and address potential omitted variables.

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What Shapes Economic Growth in BRICS? Exploring the Role of Institutional Quality and Trade Openness

Cited by 13 publications

References 48 publications

Investigating the Impact of Institutional Quality Under the Petroleum Price Deregulation Policy Regime on the Economic Growth of an Emerging Economy

Investigating the Impact of Institutional Quality Under the Petroleum Price Deregulation Policy Regime on the Economic Growth of an Emerging Economy

Institutional quality and economic growth in Sub-Saharan Africa: a panel data approach

Uganda’s Debt Sustainability: Testing The Efficacy of Debt Overhang Theory

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