TITLE:
Institutional Quality and Economic Growth: The Case of Emerging Economies
AUTHORS:
Canh Phuc Nguyen, Thanh Dinh Su, Thai Vu Hong Nguyen
KEYWORDS:
Institutional Quality, Economic Growth, Emerging Economies, System GMM
JOURNAL NAME:
Theoretical Economics Letters,
Vol.8 No.11,
July
23,
2018
ABSTRACT: The roles of institutional quality on economic
growth are still heavily debated in the literature. This paper investigates the
impacts of institutional quality on economic growth for 29 emerging economies
over the 2002-2015 period by employing System Generalized Method of Moments
(SGMM) estimators. We find the significant positive impacts of institutional
quality on economic growth. The institutional quality impedes the positive
effects of foreign direct investments (FDIs) and trade openness on economic growth.
However, institutional quality improvement can mitigate the competition brought
by trade openness in the areas FDIs operate to optimize their spill-over
effect.