Article Sidebar

Submitted
October 14, 2020
Accepted
May 21, 2021
Published
July 3, 2021
Download
PDF
Statistic
Read Counter : 850 Download : 1090

Downloads

Download data is not yet available.

Main Article Content

Abstract

The ideal community life structure has a strong institutional level. Economists agree on the institution as an important factor in creating economic growth. The purpose of this study was to investigate the influence of institutional factors on economic growth in ASEAN. Institutional variables include political stability, voice and accountability, government effectiveness, regulatory quality, rule of law, and control of corruption, while economic variables include exports and imports. This study utilized panel data estimation on 10 countries in ASEAN during 2002-2018. The fixed effect model was the best estimation model. The findings show that there are three keys of institutions that had a significant influence on per capita GDP on ASEAN, namely voice and accountability, regulatory quality, and rule of law. It could be that if the institutional factors are weak, it will be detrimental to economic performance. The policy implication is that the synergy of all stakeholders needs to be improved for better institutional enforcement.

Keywords

institution institutional economics economic growth ASEAN

Article Details

License

Authors who publish with this journal agree to the terms:

Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.

Creative Commons License

Jurnal Ekonomi Pembangunan is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License..

Author Biographies

Vita Kartika Sari, Faculty of Economics and Business, Universitas Sebelas Maret, Central Java

Ekonomi Pembangunan FEB UNS

Dwi Prastyani, Faculty of Economics and Business, Universitas Sebelas Maret, Central Java

Lecturer
How to Cite
Sari, V. K., & Prastyani, D. (2021). The Impact of the Institution on Economic Growth: An Evidence from ASEAN. Jurnal Ekonomi Pembangunan, 19(1), 17–26. https://doi.org/10.29259/jep.v19i1.12793
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Acemoglu, D., Johnson, S., & Robinson, J. A. (2005). Institutions As A Fundamental Cause of Long-Run Growth. Handbook of Economic Growth. https://doi: 10.1016/S1574-0684(05)01006-3.
  2. Acemoglu, D., & Robinson, J. A. (2008). The Role of Institutions in Growth and Development. Commission on Growth and Development Working Paper;No. 10. World Bank, Washington, DC. © World Bank. https://openknowledge.worldbank.org/handle/10986/28045. http://dx.doi.org/10.5202/rei.v1i2.14
  3. Aron, J. (2000). Growth and Institutions: A Review of the Evidence. The World Bank Research Observer, 15(1), 99–135. https://www.jstor.org/stable/i382440
  4. Azfar, O. (2006). The New Institutional Economics Approach to Economic Development: A Discussion of Social, Political, Legal, and Economic Institutions. The Pakistan Development Review, 45(4). 965-980.
  5. Chang, H.-J. (2010). Institutions and Economic Development: Theory, Policy and History. Journal of Institutional Economics. 7(4), 473–498. https://doi.org/10.1017/S1744137410000378
  6. Chetthamrongchai, P., Jermsittiparsert, K., & Saengchai, S. (2020). How The Nexus Among The Free Trade, Institutional Quality and Economic Growth Affect The Trade from ASEAN Countries. Entrepreneurship and Sustainability Issues, 7(3), 2079–2094. https://doi.org/10.9770/jesi.2020.7.3
  7. Constantine, C. (2017). Economic Structures, Institutions and Economic Performance. Journal of Economic Structures, 6(2). 1-18. https://doi.org/10.1186/s40008-017-0063-1.
  8. Drury, A. C., Krieckhaus, J., & Lusztig, M. (2006). Corruption, Democracy, and Economic Growth. International Political Science Review, 27(2), 121–136. https://doi.org/10.1177/0192512106061423.
  9. Ferrini, L. (2012). The Importance of Institutions to Economic Development. E-International Relations, 1–5. https://www.e-ir.info/2012/09/19/the-importance-of-institutions-to-economic-development/.
  10. Glaeser, E. L., Porta, R. L., Silanes, F. L., & Shleifer, A. (2004). Do Institutions Cause Growth? Journal of Economic Growth, 9, 271–303 . https://doi.org/10.1023/B:JOEG.0000038933.16398.ed.
  11. Goldsmith, A. A. (1998). Institutions and Economic Growth in Africa. Harvard Institute for International Development. https://doi.org/10.22004/ag.econ.294403
  12. Gujarati, D. N. (2003). Basic Econometrics. New York: McGraw Hill.
  13. Gunnarsson, C. (1991). What Is New and What Is Institutional in The New Institutional Economics? Scandinavian Economic History Review, 39(1), 43–67. https://doi.org/10.1080/03585522.1991.10408199.
  14. Haini, Hazwan. (2019). Examining the Relationship between Finance, Institutions and Economic Growth: Evidence from the ASEAN Economies. Economic Change and Restructuring https://doi.org/10.1007/s10644-019-09257-5.
  15. Henisz, W. J. (2003). The Institutional Environment for Economic Growth. Economics and Politics, 12(1), 1–31. https://doi.org/10.1111/1468-0343.00066.
  16. Hirschman, A. O. (1994). The On-and-Off Connection Between Political and Economic Progress. Papers and Proceedings of the Hundred and Sixth Annual Meeting of the American Economic Association, 343–348.
  17. Jutting, J. (2003). Institutions and Development: A Critical Review, OECD Development Centre, Technical Papers No. 210, Organization for Economic Co-operation and Development, Paris, France.
  18. Karimi, M.S. & Daiari, M.H. (2018). Does Institutions Matter for Economic Development? Evidence for ASEAN Selected Countries. Iran. Econ. Rev. Vol. 22, No. 1, 2018. pp. 1-20. RePEc:eut:journl:v:22:y:2018:i:1:p:1
  19. Khalil, M., Ellaboudy, S., & Denzau, A. (2007). The Institutions and Economic Development in the OECD. International Research Journal of Finance and Economics, 12. 67-79
  20. Lee, H.-A., Kadir, S. U. S. A., & Abidin, S. N. S. Z. (2007). ICT, Institutions and ASEAN-5 Economic Performance. PACIS 2017 Proceedings. 176.
  21. https://aisel.aisnet.org/pacis2017/176.
  22. Liu, et al., (2018). The Effect of Governance Quality on Economic Growth: Based on China’s Provincial Panel Data. Economies. 2018; 6(4):56. https://doi.org/10.3390/economies6040056
  23. Masron, T. A., & Abdullah, H. (2010). Institutional Quality as a Determinant for FDI Inflows: Evidence from ASEAN. World Journal of Management, 2(3), 115–128.
  24. Nawaz, S., Iqbal, N., & Khan, M. A. (2014). The Impact of Institutional Quality on Economic Growth: Panel Evidence. The Pakistan Development Review, 53(1), 15-31. www.jstor.org/stable/24397923
  25. Nirola, Nupur and Sahu, Sohini. (2019). The interactive impact of government size and quality of institutions on economic growth- evidence from the states of India. Heliyon 5(3), e01352. https://doi.org/10.1016/j.heliyon.2019. e01352.
  26. North, D. (1990). Institutions, Institutional Change, and Economic Performance. Cambridge: Cambridge University Press. https://doi.org/10.1017/CBO9780511808678
  27. Przeworsky, A. (2004). The Last Instance: Are Institutions the Primary Cause of Economic Development? European Journal of Sociology, 45(2), 165-188. https://doi.org/10.1017/S0003975604001419
  28. Ramadhan, M. (2019). Assessing of The Impact of Good Governance and Institutions on Economic Growth in Indonesia. International Journal of Scientific & Technology Research 8(11):2594-2598.
  29. Renshaw, C. S. (2013). Democratic Transformation and Regional Institutions: The Case of Myanmar and ASEAN. Journal of Current Southeast Asian Affairs, 32(1), 29–54. https://doi.org/10.1177/186810341303200102
  30. Richter, R. (2005). The New Institutional Economics - Its Start, Its Meaning, Its Prospects. European Business Organization Law Review. European Business Organization Law Review, 6(2), 161–200. https://doi.org/10.1017/S1566752905001618
  31. Rodrik, D. (2000). Institutions for high-quality growth: What they are and how to acquire them. Studies in Comparative International Development, 35, 3–31. https://doi.org/10.1007/BF02699764
  32. Rodrik, D. (2004). Institutions and Economic Performance - Getting Institutions Right. IFO DICE Report, IFO Institute - Leibniz Institute for Economic Research at the University of Munich, 2(2), 10–15. https://doi.org/10.1017/CBO9780511808678
  33. Williamson, O. E. (2000). The New Institutional Economics: Taking Stock, Looking Ahead. Journal of Economic Literature, 38(3), 595–613. https://doi.org/10.1257/jel.38.3.595.
  34. Yildirima, A., & GokalPb, M. F. (2016). Institutions and Economic Performance: A Review on the Developing Countries. Procedia Economics and Finance, 38, 347–359. https://doi.org/10.1016/S2212-5671(16)30207-6

Similar Articles

1 2 3 > >> 

You may also start an advanced similarity search for this article.