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Jurnal Ekonomi Malaysia

56 (1) 2022 93 – 105

The Influence of Institutional Quality on Human Development: Evidence from Developing Countries
Pengaruh Kualiti Institusi ke atas Pembangunan Manusia: Bukti dari Negara-negara Membangun

College of Social and Management Science
Al-Qalam University Katsina
Dutsinma Road
820102, Katsina
NIGERIA.

kamal2kabir@gmail.com

Faculty of Business and Management
University Sultan Zainal Abidin
Gong Badak Campus
21300 Kuala Nerus, Terengganu
MALAYSIA.

wanhakimah84@gmail.com

Abstract

The paper evaluates the influence of institutional quality on human development in 14 developing countries using data over 1991-2019. We employed the Dynamic Common Correlated Effect method that accounts for heterogeneity and cross-sectional dependency associated with panel data, due to unobserved common factors. The findings revealed the evidence of positive and statistically significant long run effect of institutional quality on human development. In addition, financial development was found to promote human development whereas higher military expenditure negatively affected it in the long run. The results suggest that institutional quality promotes long run human development. Policymakers should nurture and develop institutions that have good quality such as deterring corruption, improving quality regulation and the application of the rule of law.

Keywords

cross-sectional dependency; developing countries; dynamic common correlated effect; human development; Institutional quality

JEL Codes

C31, C33, O15, P48
http://dx.doi.org/10.17576/JEM-2022-5601-07
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Kamalu, K., & Wan Ibrahim, W. H. (2022). The Influence of Institutional Quality on Human Development: Evidence from Developing Countries. Jurnal Ekonomi Malaysia, 56(1), 93–105. http://dx.doi.org/10.17576/JEM-2022-5601-07

@article{kamalu2022influence,
  title={The Influence of Institutional Quality on Human Development: Evidence from Developing Countries},
  author={Kamalu, Kabiru and Wan Ibrahim, Wan Hakimah},
  journal={Jurnal Ekonomi Malaysia},
  volume={56},
  number={1},
  pages={93—105},
 

year={2022},
}

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