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This study investigates whether capital account liberalization, a leading characteristic of globalization, is associated with firms' future innovation output. Employing a novel firm-level panel data set covering 41 countries over two decades, we show that capital account liberalization is significantly associated with higher corporate patenting activities, particularly for firms from innovation-intensive industries. Further analyses show that the effect is stronger among firms from economies in a better legal environment, signifying the important role of good institutional quality in facilitating the positive impact of liberalization. The effect is also stronger among firms with higher initial productivity, consistent with the "productivity" hypothesis, according to which bigger and more productive firms generate more innovation after liberalization. Our findings are robust to the use of various measurements, subsamples, and estimation models. This study provides global firm-level evidence of the real economic impact of financial globalization. [ABSTRACT FROM AUTHOR]

Almost three years after the pandemic started, the world had a strong 3.6% recovery after the recession (IMF, 2021). But, this rebound remains uneven across countries. At the same time, many emerging economies kept dealing with Covid-19, and in some advanced countries, the number of Covid cases is starting to rise again. This paper empirically investigates how the government's responses to the pandemic affected economic growth in 105 developing and developed countries from 2017 to 2021. Based on panel smooth transition regressions (PSTR) by Gonzalez et al. (2017), the results indicate that the overall effect of public pandemic measures on growth is negative. However, the effects vary depending on how developed a country is and how good its institutions are. Lockdown measures have hurt emerging economies more than advanced economies. Also, high standards of institutional indicators, including how well the government operates and how good the regulations are, reveal that stringency measures have a smaller negative effect on growth, whatever the country's level of development. Upper-middle income and advanced economies are less affected by pandemic under stable political conditions. Therefore, policymakers should consider providing a responsible institutional environment so that effective steps can be taken to contain efficiently epidemics. [ABSTRACT FROM AUTHOR]

In the context that countries around the world are making efforts to reduce carbon emissions and promote the use of renewable energy, the impact of these issues on the economy is becoming more and more concerned. Our study investigates the impact of renewable energy consumption and carbon dioxide emissions on financial stability and the role of institutional quality in mitigating these effects. Using panel data from 147 countries, including both developed and developing countries, and applying the quantile regression method, this study found that both renewable energy consumption and carbon dioxide emissions reduce financial stability. Moreover, the negative effects of carbon dioxide emissions on financial stability intensify in countries with higher financial stability. Additionally, institutional quality was found to play an important role in mitigating the negative impacts of renewable energy consumption and carbon dioxide emissions on financial stability, especially in countries with high levels of financial stability; the impact was insignificant in developing countries with low levels of financial stability. Our results can be useful for regulators in both developed and developing countries to control the negative impacts of carbon emission reduction and renewable energy policies on financial stability. [ABSTRACT FROM AUTHOR]

Agriculture is a way of life in the ASEAN region due to the fact that eight out of ASEAN member states rely on agriculture for food and income. Therefore, the present study empirically explores the impact of agricultural trade liberalization on agricultural total factor productivity (ATFP) growth in ASEAN countries using panel data from 2002–2021. By deploying the data envelopment analysis-Malmquist productivity index (DEA-Malmquist) approach in the first stage and the pooled mean group (PMG) panel autoregressive distributed lag (ARDL) model in the second stage, the findings reveal that ATFP in the ASEAN countries demonstrated moderate growth over the study period, with an average mean value of 1.028. This signifies that the average growth in ATFP in the region was 2.8% across the countries and over a period of time. This suggests that the ASEAN countries have become increasingly dependent on technological innovation in their agricultural sectors in recent years. Agricultural trade liberalization positively contributed to ATFP growth in the short term, whereas the impact was not statistically significant in the long term. These consequences are highly significant and should not be disregarded since trade liberalization plays a crucial role in determining agricultural competitiveness. [ABSTRACT FROM AUTHOR]

Water pollution constitutes an increasingly urgent problem worldwide. This is particularly true for the African continent, which is experiencing high and increasing levels of water pollution. The continent holds great economic growth potential, making it imperative to understand the economic drivers of water pollution to ensure that African countries develop without degrading water quality. This study examines how countries' income level, trade, and institutional quality affect water pollution across 42 African countries from 2002 to 2016, using newly estimated data on water pollution from the WorldQual model. An augmented Environmental Kuznets Curve (EKC) is employed using static and dynamic panel estimation techniques, specifically cross-section ordinary least squares and fixed effects regressions, and the system generalised method of moments. The static analysis reveals that economic growth initially increases pollution until reaching a turning point between 6244 and 8974 USD of Gross Domestic Product (GDP) per capita, after which pollution levels decrease. Yet, the dynamic analysis suggests the relationship between GDP and pollution is insignificant. Further, the study uncovers that the impact of institutional quality on water pollution depends on the level of trade. Specifically, at high levels of trade, higher institutional quality is associated with less water pollution, while at low levels of trade, higher in institutional quality is associated with more pollution. This study highlights the complex interplay of economic and institutional factors that must be navigated to effectively address the challenge of water pollution in Africa. Highlights: Countries are unlikely to simply outgrow the challenge of water pollution. Thus, growth policies need to go hand in hand with policies on water conservation. The impact of institutional quality on water pollution depends on countries' level of trade intensity, possibly due to a change in the focus of institutions. Thus, institutional improvement does not necessarily result in stricter (and enforced) environmental regulations. Tailored interventions are essential to ensure that growth does not come at the expense of the environment. Yet, more data on water pollution and environmental regulations in Africa is needed to fully understand the complex relationship between water pollution, economic development, and institutions. [ABSTRACT FROM AUTHOR]

In the face of growing efforts to achieve sustainable development Goal 7, 9, 13, and 16 in Africa, this study examines the environmental impacts of technological progress, fossil fuels, and institutional quality in achieving environmental sustainability in Central and Southern countries. The empirical analysis draws from a panel dataset spanning from 1996 to 2021, and utilizes the innovative method of Moments quantile regression technique, adjusted with the bootstrap variance algorithm and Half-Panel Jackknife (HPJ) Wald-type test with a bias-corrected pooled estimator. The findings reveal that fossil fuel consumption has a significant negative impact on sustainability. Surprisingly, institutional quality does not affect environmental outcomes. Central Africa faces challenges in adopting a sustainable technological path, while South African nations show a U-shaped relationship between technological progress and CO2 emissions. In both Central and South Africa, high GDP per capita and fossil fuel consumption have a detrimental effect on environmental sustainability. In South Africa, there is bidirectional causality between CO2 emissions and GDPsq, FOSSIL, while a unidirectional causality exists from fossil fuels to TECH. Overall, the study suggests a promising link between technological advancements and environmental sustainability in the South African region. [ABSTRACT FROM AUTHOR]

The key concernment for countries in achieving sustainable development goals is reducing emissions. Most studies focused on investigating the role of technological innovation in reducing emissions. The reaction of innovation needs to be considered when increasing emissions. The objective of this research is to examine the interrelationship between technological innovation and carbon emissions for 71 nations in the world from 1996 to 2020, applying simultaneous equation modelling (SEM) with three-stage least squares (3SLS). Outcomes demonstrate a bidirectional relationship between innovation and carbon emissions. Specifically, innovation influences emissions negatively, while carbon emissions influence innovation positively. Renewable energy and forest areas negatively influence emissions, while tourism and agriculture positively influence emissions. Trade and human capital positively impact innovation. Institutional quality enhances environmental quality, while it negatively influences innovation. Several policies promote innovation and reduce emissions towards sustainable development goals. [ABSTRACT FROM AUTHOR]

Purpose: The paper aims at addressing the following research questions: does institutional quality improve countries' environmental efficiency? And which pillars of institutional quality improve countries' environmental efficiency? Design/methodology/approach: By specifying a directional distance function in the context of stochastic frontier method where GHG emissions are considered as the bad output and the GDP is referred as the desirable one, the work computes the environmental efficiency into the appraisal of a production function for the European countries over three decades. Findings: According to the countries' performance, the findings confirm that high and upper middle-income countries have higher environmental efficiency compared to low middle-income countries. In this environmental context, the role of institutional quality turns out to be really important in improving the environmental efficiency for high income countries. Originality/value: This article attempts to analyze the role of different dimensions of institutional quality in different European countries' performance – in terms of mitigating GHGs (undesirable output) – while trying to raise their economic performance through their GDP (desirable output). Highlights: The paper aims at addressing the following research question: does institutional quality improve countries' environmental efficiency? We adopt a directional distance function in the context of stochastic frontier method, considering 40 European economies over a 30-year time interval. The findings confirm that high and upper middle-income countries have higher environmental efficiency compared to low middle-income countries. The role of institutional quality turns out to be really important in improving the environmental efficiency for high income countries, while the performance decreases for the low middle-income countries. [ABSTRACT FROM AUTHOR]

The present research aims to investigate the determinants of economic development and productivity by proposing an empirical analysis of the economic effects of institutional quality on the economic complexity of export at the intra-national level, focusing on 103 Italian provinces from 2004 to 2016. Using the System Generalised Method of Moments (System-GMM) estimator, the study assesses the influence of various institutional dimensions on provincial economic complexity, as measured by the Economic Complexity Index (ECI). The findings indicate that institutional quality, particularly rule of law, regulatory quality, and voice and accountability, significantly enhances economic complexity. Better formal and informal institutions such as completeness of contracts, social cohesion, contract enforcement, by reducing transaction costs and uncertainty, and by favouring knowledge dissemination and security of investments, are source of comparative advantage in complex industries that lead to diversified and sophisticated production, fostering economic growth and innovation. Moreover, the study emphasises the importance of related activities, which interact with institutions to support complex and innovative export-related activities through knowledge spillovers and related diversification. The analysis also highlights the pivotal role of human capital, social capital, and innovation, which should remain focal points for policymakers. [ABSTRACT FROM AUTHOR]

This study explores the link between informality and institutional quality in 48 emerging economies from 2013 to 2018, using partial least squares – structural equation modeling (PLS-SEM). It delves into the role of informality and the poorly understood drivers in these economies. This study models property rights, public fund diversion, and government transparency. This study explores systemic conditions and finds a complex link between weaker institutions and increased informality. The analysis found an association between lower institutional quality and higher levels of informality, aligning with the theory that more robust institutions are linked to fewer informal activities. However, the analysis also indicated that systemic factors have a significant relationship with the degree of informality. Mediation analysis indicated an association between systemic issues, reduced institutional quality, and increased informality. State legitimacy, inequality, and factionalism have been highlighted as potential areas to address in an effort to decrease informality. Enhancing systemic conditions and public fund oversight may be important considerations. A dual approach to institutional and systemic reforms has been suggested. Regional differences indicate a need for further research on context-specific drivers. This exploratory PLS-SEM study offers detailed evidence to aid formalization policies in emerging economies. [ABSTRACT FROM AUTHOR]

The goal of simultaneously increasing economic development while mitigating ecological disbenefits is a significant challenge for many countries. There is a growing recognition that greater attention must be given to environmental concerns to maintain and improve biodiversity and generate positive ecological outcomes as part of measures to meet the United Nations' Sustainable Development Goals (SDGs). Many countries have increased their reliance on renewable energy to reduce carbon emissions and overall ecological footprint, but it is argued that any positive relationship between economic growth and pro‐environmental outcomes relies heavily on the quality of a country's institutions. This paper investigates this contention, focusing on the so‐called Next 11 (N‐11) countries, that is those developing countries exhibiting the most rapid economic development in the last three decades. Using the cross‐sectionally augmented autoregressive distributed lags (CS‐ARDL) technique to address cross‐sectional dependence in panel data, this paper examines the effects of renewable energy and institutional quality on the ecological footprint of the N‐11 countries from 1990 to 2022. It shows that while economic growth frequently generates environmental degradation, increasing consumption of renewable energy reduces the ecological footprint provided that institutional quality contributes positively to pro‐environmental outcomes. This analysis highlights the important role of institutional quality when designing policies to promote environmental sustainability. The results provide a benchmark for policymakers in the N‐11 countries to increase investment in renewable energy resources to help deliver environmental sustainability goals while also emphasising the need for governments to develop improved institutional quality. [ABSTRACT FROM AUTHOR]

This study aims to provide an empirical insight into whether institutional quality moderates the impact of public expenditure on economic sustainability among the Sub‐Saharan African (SSA) countries. Using a quantitative and explanatory research design, this study sourced a 20‐year longitudinal dataset on 48 SSA countries from the World Development Indicators (WDI) and World Governance Indicators (WGI) databases from 2003 to 2022. Both Pooled OLS and System GMM econometric techniques were employed for analysis. It was found that public expenditure and institutional quality positively and significantly influence economic sustainability. However, institutional quality was found to negatively and significantly moderate this relationship. The practical implication suggests nations may face a trade‐off between maintaining institutional quality and ensuring long‐term economic sustainability. The moderation effect of institutional quality is novel in nature and adds to the body of existing literature. [ABSTRACT FROM AUTHOR]

Purpose: This study attempts to assess the role that institutional quality (IQ) plays in influencing inflows and outflows of Foreign Direct Investment (FDI) for BRICS nations as burgeoning FDI is flowing into and out of these countries. Moreover, this paper explores the impact of individual governance indicators separately on the FDI flows. Design/methodology/approach: The study analyses this nexus for these emerging economies for the period 1996–2019 using autoregressive distributed lag technique. Findings: The study indicates a significant and positive coefficient for IQ in India and South Africa, suggesting that improving IQ would enhance the IFDI. However, for outward FDI (OFDI)–IQ linkage, the results show a negatively significant impact of IQ on OFDI for Brazil and Russia. Additionally, the authors observe control of corruption as a significant institutional component for attracting inward FDI for Brazil, India and South Africa, whereas it is an insignificant factor for Russia and China. Further, the authors notably find that upgrading the governance indicators will decrease the level of OFDI for Brazil, Russia, China and South Africa. On the contrary, findings suggest that improving the IQ will foster the OFDI for India. Originality/value: This study uses time-series analysis instead of cross-country analysis (used extensively in literature), avoiding heterogeneity. Further, this study explores the IFDI–IQ link for BRICS nations, which are captivating a significant chunk of IFDI, and still not given much attention in the extant literature. Moreover, the authors identify the impact of IQ on the OFDI, neglected by the existing studies. [ABSTRACT FROM AUTHOR]

Prior literature establishes a link between family involvement and the firm financial performance. However, the mechanisms through which family involvement in a firm affects its financial performance in different institutional settings are largely unknown. Using an unbalanced panel of 3,322 listed firms from 32 countries over a 9-year period, we find that family involvement in ownership and management on average has negative effects on financial performance. Moreover, the negative effect of family ownership is less profound in countries with good institutional quality. We further find that R&D intensity partially mediates the negative relationship between family involvement and the firm financial performance, but the mediation effect is conditional on the degree of institutional quality in a country. These findings advance the family business, innovation, and institutional literature, and offer important implications for theory and practice. [ABSTRACT FROM AUTHOR]

Recent studies demonstrated that green innovation and environment-related technologies reduce energy intensity and improve energy efficiency, contributing to the reduction of carbon emissions. However, the existing studies employ linear estimation methods to examine the relationship between green innovation and energy intensity and do not consider the indirect implications of institutional quality for the effect of green technology on energy intensity. Institutional quality is found to be an essential driver of innovation, and countries may need to achieve at least a minimum level of institutional quality to promote green innovation and improve their energy intensity. To test this hypothesis, this paper examines the relationship between energy intensity and green innovation using a panel dataset from 72 countries between 1996 and 2017 and a panel threshold model when institutional quality is considered a threshold variable. The findings highlight that green innovation reduces the energy intensity if and only if countries surpass a certain threshold of institutional quality. Therefore, countries need to improve their institutional quality to promote green innovation and benefit from green technologies in improving their energy intensity. [ABSTRACT FROM AUTHOR]

This study explores the relationship between institutional quality and bioeconomy performance in Italian regions, utilizing both fixed-effects and 2SLS regression models. The findings consistently show a positive association between institutional quality (and its key pillars) and the performance of bioeconomy sectors. These insights offer valuable guidance for policymakers to enhance bioeconomy outcomes through targeted institutional reforms. By contributing to the growing body of research on the regional dimensions of bioeconomy development, this study provides a roadmap for fostering equitable and sustainable growth across diverse regions. [ABSTRACT FROM AUTHOR]

This study explores the intricate relationship between institutions and development, with a specific focus on the causality between institutions and trade in West African Economic and Monetary Union (WAEMU) countries. We examine this causality by separately analyzing manufactured goods imports and primary products exports to understand the sensitivity of each, treating these flows in value. Using panel co-integration, panel causality, and the Poisson pseudo-maximum likelihood (PPML) model over the period from 2002 to 2021, our findings indicate a bidirectional Granger causality between trade and institutional quality. The PPML results reveal a positive and significant effect of institutional variables on imports and a negative and significant effect on exports. This implies that the low quality of institutions in WAEMU countries is detrimental to their exports of primary products. Thus, a robust institutional context can generate positive spillovers on trade and proper trade can generate significant revenues to finance the establishment of good institutions. Productive and high-performance exporting companies need to create and strengthen good institutions to remain competitive in the international economy, rather than fortifying them for personal gain to leverage political power and decision-making authority. [ABSTRACT FROM AUTHOR]

This study investigates the connections among institutional quality (IQ), globalization, technological innovation, and environmental sustainability in China, using time‐series data from 1995 to 2022. The autoregressive distributive lag model (ARDL) and Granger causality, stability, and diagnostics approaches were employed for rigorous data analysis. Results of the ARDL test reveal that IQ and technological innovation have a negative and significant impact on carbon dioxide (CO2) emissions in the long run. In the short run, globalization has an insignificant impact on CO2 emissions; on the other hand, IQ, technological innovation, foreign direct investment, and economic growth significantly affect CO2 emissions in China. The result of Granger causality also confirmed unidirectional causality running from globalization, technological innovation, and IQ toward CO2 emissions. Furthermore, the NARDL analyses supported this research's findings. The study suggests that implementing effective environmental regulations, improving governance, and promoting transparency and accountability can enhance the enforcement of environmental policies. Although allowing the limited short‐term impact of globalization, planned global engagement associated with ecological goals is also recommended. Furthermore, policy recommendations include investing in research and development of green technologies, incentivizing companies to adopt eco‐friendly practices, and supporting startups focused on environmental solutions, which can drive positive change toward environmental sustainability in China. [ABSTRACT FROM AUTHOR]

Our study examines the comparative impact of governance quality on the dynamic relationship between monetary policy rate, saving, and economic growth in emerging economies in sub‐Saharan African countries from 2005Q1 to 2022Q4. Using the Toda‐Yamamoto (TY) model, we found that governance quality influence on monetary policy rate is negative with adverse effect on investment‐growth while exerting positive influence on savings‐growth nexus in Nigeria but the contribution is quite appreciative and can be leverage on. Governance quality exert negative influence on monetary policy rate but with positive direction from investment and savings to growth in Egypt. The magnitude of the monetary policy rate, savings, investment is quite negligible in Egypt. For South Africa, governance quality exerts positive influence on monetary policy rate but failed to translate to positive effect on investment, savings to growth in South Africa. Although, the contribution of monetary policy rate, savings, investment to growth is significant in South Africa. Thus, enhancing institutional development to foster a more effective financial incentive system and seamless policy transmission is crucial to address the impact of governance quality on monetary policy outcomes and enable better macroeconomic interactions. [ABSTRACT FROM AUTHOR]

Economic policy uncertainty significantly influences governmental decisions regarding environmental sustainability, particularly in CO2 emissions reduction efforts. This study examines the impact of economic policy uncertainty on environmental inefficiency across 136 emergent and non‐emerging countries from 1990 to 2018, using an unbalanced and heterogeneous sample. Additionally, we explore the moderating effects of institutional quality and political orientation on this relationship. Employing a directional distance function in a parametric context, our analysis reveals that economic policy uncertainty exacerbates environmental inefficiency. However, we find that institutional quality and political orientation act as important moderating factors, fostering greater environmental sustainability. Sensitivity analyses support these empirical findings, providing insights into potential implications for economic policy and guiding regulatory and policymaking efforts toward achieving enhanced environmental sustainability. [ABSTRACT FROM AUTHOR]

Purpose: The objective of this paper is to investigate the impact of institutional quality, foreign direct investment (FDI) inflows and human capital development on Indonesia's poverty rate. Design/methodology/approach: The quantile regression on data ranging from 1984 to 2019 was used to capture the relationship between the impact of the independent variables (FDI inflows, institutional quality and human capital development) on Indonesia's poverty rate at different quantiles of the conditional distribution. Findings: The empirical results reveal that low-quantile institutional quality is detrimental to poverty eradication, whereas FDI inflows and human capital development are significant at higher quantiles of distribution. This implies that higher-value FDI and advanced human capital development are critical to lifting Indonesians out of poverty. Practical implications: Policymakers should prioritise strategies that advance human capital development, create an enticing investment climate that attracts high-value investments and improve institutional quality levels. Originality/value: This study contributes to the existing literature because, compared to previous studies that focussed on estimating the conditional mean of the explanatory variable on the poverty rate. It rather provides a more comprehensive understanding of the quantiles of interest of FDI inflows and institutional quality on the Indonesian poverty rate, allowing for more targeted policies. Peer review: The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-09-2023-0733 [ABSTRACT FROM AUTHOR]

This study inspects the health consequences of greenhouse gases, energy use, institutional quality and globalization for the 23 developing economies. Utilizing panel data from 2000 to 2022, various estimation techniques, including static models (pooled, fixed and random), the two‐step systemGeneralized Methods of Moments (GMM and Panel Auto Regressive Distributive Model (PARDL), are applied to investigate the short‐ and long‐term effects of greenhouse gases, energy use, institutional quality and globalization on health. Panel causality tests, Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) are employed to ensure robustness and causal linkage among variables. The results confirmed a positive association between health and its lag value. Institutional quality negatively influences health expenditure, while greenhouse gases, energy use and globalization exhibit an increasing effect on health expenditure. Life expectancy, institutional quality, energy use and globalization have favourable effects, while greenhouse gases negatively affect health outcomes. In Model 1, energy usage and health expenditures have two‐way causality, and green house gases and energy use in Model 2 have a bi‐directional causal linkage. All variables exhibit unidirectional causality, except globalization and institutional quality, as shown by the Dumitrescu and Hurlin causality test. The study complements the literature by stating that institutional quality is the key instrument for managing the negative consequences of the recent increase in globalization and energy use and their detrimental impact on health in developing economies. [ABSTRACT FROM AUTHOR]

This study aims to identify the influence of global governance on the sustainability performance of countries. The methodological approach is quantitative, employing descriptive and inferential statistics with multiple regression analysis for a sample of 127 countries. The independent variable corresponds to the governance measured by the world governance indicators. The dependent variables are measurements of sustainability performance, including the SDG Index Score, the Environmental Performance Index, the Human Development Index, and Gross Domestic Product per capita. The main results indicate that the governance indicators Voice and Accountability and Government Effectiveness positively affect the overall sustainability performance of countries. In environmental sustainability, the influence of the voice and responsibility and regulatory quality indicators was identified, while in the social and economic dimensions a positive influence of governmental effectiveness and regulatory quality was observed. On the other hand, the corruption control variable exerts a negative influence on general and social sustainability. In general, it can be concluded that the institutional quality of a country influences the government's ability to achieve sustainable development goals and targets, in addition to attaining favorable results in the environmental, social, and economic dimensions of sustainability. [ABSTRACT FROM AUTHOR]

Institutional quality (InQ) plays an important role in shaping economic growth (ECG), influencing how economies develop and perform. The literature addresses the nexus between InQ and ECG and the link between health and ECG; findings are often contradictory, creating knowledge gaps. Importantly, research on the interplay between InQ, health, and ECG in Sub-Saharan African (SSA) countries is particularly limited. This study aims to address this gap by evaluating how health impacts ECG, with an emphasis on the mediating role of InQ in the health–growth nexus in SSA. This study examines these interplays across 35 SSA countries from 2012 to 2022. The life expectancy at birth (LEX) and real gross domestic product per capita (GDP) are used as proxies for health outcomes and ECG, respectively. The system generalised method of moments estimator is employed to analyse data. Results show that the LEX has a strong positive effect on economic growth in SSA countries. Furthermore, the InQ indicators (such as control of corruption, government effectiveness, rule of law and political stability, and absence of violence) are positively correlated with ECG. When the LEX interacts with InQ indicators, InQ is identified as a key channel through which LEX influences ECG. The findings confirm that InQ plays a crucial role in the health–growth nexus, with the positive impact of LEX on ECG being more pronounced in countries with higher levels of InQ, while the effect is weaker in countries with lower levels of InQ. The findings of this study have crucial policy implications, highlighting the intricate link among institutional quality, health outcomes, and economic growth. This study's findings provide essential insights for policymakers to design focused strategies that improve InQ and health outcomes to achieve sustained ECG in SSA. [ABSTRACT FROM AUTHOR]

This study investigates the dynamic relationship between trade openness, external debt, and economic growth in Sub-Saharan Africa, focusing on the period from 1990 to 2023. The research examines how trade openness and external debt impact regional economic performance by employing Panel Autoregressive distributed lag (ARDL) techniques utilizing the pool mean group and mean group estimator's approach. The analysis reveals that while trade openness does not stimulate economic growth, external debt similarly has significant challenges, often hindering long-term development prospects within Sub-Saharan African countries. The findings underscore the importance of managing debt sustainably and aligning trade policies with growth-enhancing strategies. Additionally, human capital and institutional quality are essential endogenous growth factors that significantly influence economic growth in Sub-Saharan Africa. The study recommends that while trade openness alone may not directly drive economic growth, its benefits can be amplified by complementary strategies such as investing in human capital, technological adoption, and industrial policy. The study concludes with policy recommendations to enhance economic resilience and foster sustainable growth, such as attracting foreign direct investment, combined with infrastructure development and sound fiscal management. [ABSTRACT FROM AUTHOR]

This is the first study to investigate whether country institutional quality influences the impact of supervisory power on insurer soundness. It tests the hypothesis arguing that institutional quality enhances the implementation capacity of supervisors versus the one that maintains that institutional quality mitigates the impact of supervisory power on insurer soundness, particularly when this effect is negative. An analysis is carried out on firms operating in the insurance markets of 12 Muslim-populous countries over the eight-year sample period 2009–2016. As a proxy of insurers' financial stability, we use the Z-score and conduct the study by employing the two-step system generalised method of moments. We find a negative impact of supervisory power on insurer soundness—exercised by increasing portfolio risk—that is mitigated by national institutional quality, in particular by government effectiveness, regulatory quality and control of corruption. The findings emphasise the view that national institutional quality avoids private use of supervision. [ABSTRACT FROM AUTHOR]

This study investigates the impact of financial development (FD) and green investments (GIs) on environmental pollution in Eastern and Southern African countries from 1990 to 2020. The research not only investigates the direct impacts of FD and green finance on environmental pollution but also examines the moderating role of institutional quality (IQ) and possible nonlinear effects of FD and green finance. Our analysis from the Panel autoregressive distributed lag (ARDL) long‐run PMG reveals a negative association between FD, green investment, and environmental pollution, indicating that a well‐developed financial sector supports sustainable initiatives, leading to improved environmental outcomes. IQ moderates this relationship, with strong governance enhancing the positive effects of FD and green finance on environmental preservation. Interestingly, the study identifies nonlinear impacts, suggesting that beyond a certain threshold, the contributions of FD and GIs to environmental preservation may diminish. Recognizing these nonlinearities and the role of IQ can inform more targeted policies for maximizing efforts toward environmental conservation in African economies. [ABSTRACT FROM AUTHOR]

The main goal of this article is to analyse the effects of external debt accumulation on economic growth amongst Central Asian countries. We have applied a time-series methodology utilising annual data from 2000–2017 to show that external debt has had a negative and significant effect on economic growth in Central Asian countries. We found that debt overhang will cause a higher marginal tax rate on the future output of each country, thus leading to an investment slowdown and reducing output growth by limiting productivity expansion. Moreover, we can affirm that the negative effect of external debt is often associated with the poor level of institutions and governance of Central Asian countries. [ABSTRACT FROM AUTHOR]

In this paper, we analyse the impact of the institutional quality on the sustainable development in 11 MENA countries during the period 1996-2021. Despite the significant improvement that has known some countries in recent years in terms of development indicators, the MENA authorities still require more efforts to improve their governance and to enhance the developmental impact of oil revenues. However, the deterioration of the institutional environment indicators remains the biggest obstacle to achieve the development goals, and limits the effectiveness of economic reforms. We find with FMOLS, DOLS and CCR estimations that there is a positive and significant relationship between the adjusted net saving as sustainable development factor and the institutional quality index at the level of 1%. However, when squared adjusted net savings is included, the relationship turns negative, indicating that there is still evidence of a fragile political framework and a frail understanding of politics in MENA nations.

This study intends to examine how institutional quality and macroeconomic factors affect non-performing loans within developing countries in 2010–2019. The estimation results employing the Generalized Method of Moment (GMM) method reveal that the institutional quality variable with a proxy for the government effectiveness index and regulatory quality index has a significant effect with a negative coefficient on the non-performing loans ratio (NPL). Moreover, macroeconomic variables such as inflation, unemployment, and real interest rates significantly affect NPL. In contrast, economic growth has a significant negative effect on NPL. Policymakers should focus on creating effective regulations to reduce NPLs. The government can make clear, consistent, and transparent regulations to promote a strong and competitive private sector.

The present research aims to investigate the determinants of economic development and productivity by proposing an empirical analysis of the economic effects of institutional quality on the economic complexity of export at the intra-national level, focusing on 103 Italian provinces from 2004 to 2016. Using the System Generalised Method of Moments (System-GMM) estimator, the study assesses the influence of various institutional dimensions on provincial economic complexity, as measured by the Economic Complexity Index (ECI). The findings indicate that institutional quality, particularly rule of law, regulatory quality, and voice and accountability, significantly enhances economic complexity. Better formal and informal institutions such as completeness of contracts, social cohesion, contract enforcement, by reducing transaction costs and uncertainty, and by favouring knowledge dissemination and security of investments, are source of comparative advantage in complex industries that lead to diversified and sophisticated production, fostering economic growth and innovation. Moreover, the study emphasises the importance of related activities, which interact with institutions to support complex and innovative export-related activities through knowledge spillovers and related diversification. The analysis also highlights the pivotal role of human capital, social capital, and innovation, which should remain focal points for policymakers.

Purpose – The paper assesses the role of natural resource rents in Nigeria's economy through the channel of institutional quality. Design/methodology/approach – The analysis is done with the use of autoregressive-distributed lag (ARDL) bounds testing approach to cointegration, vector error correction model (VECM), Granger causality test and cointegrating regression over the period 1996–2019. Findings – Findings support the notion that overreliance on natural resources could exacerbate the growing number of dysfunctional economic outcomes in the country. The study confirms that a mix of weak governance quality and natural resource rents could have a negligible effect on economic growth and possible retardation impact on the economy in the long run as well as in the short run. The evidence further reveals that there is unidirectional causality running from the interaction term to growth, suggesting that growth trajectory could be jointly determined by natural resource rents and the quality of institutions. Originality/value – The divergent arguments associated with the mechanisms of resource curse in each of the resource-rich countries offer ample support for the contention that economic outcomes in resource-abundant states may not be a product of resource windfalls per se, but rather the quality of governance or ownership structure. Hence, the ultimate aim of the analysis is to further understanding on the link between resource rents and growth in Nigeria via governance channel.

Purpose – The primary purpose of this study is to explore the effect of technical changes on provincial-level income inequality in Vietnam. The authors also investigate whether the quality of institutions and human capital level moderate this relationship. Design/methodology/approach – This research applies the fixed-effect and random-effect models on a balanced panel data set of 63 Vietnamese provinces/cities from 2010 to 2020. Findings – The study’s empirical results show that technical improvement has a nonlinear influence on income disparity in Vietnamese localities. When the local level of technology is limited, technological change can mitigate income disparity. However, as local technological levels increase, inequality tends to rise. Moreover, the study also reveals that the quality of a province’s institutions and the level of human resources are factors that moderate the correlation between technological change and income inequality. For provinces with better institutional quality and/or better human resources, inequality tends to decline under the impact of technological change. Practical implications – The results of this study suggest that while encouraging technology advancement, localities should also ensure sustainable development, reduce income inequality and focus on improving institutional quality and human resources development. Originality/value – There are increasing concerns about the impact of technical change on inequality in income distribution; however, empirical evidence on this relationship in developing countries remains scarce. This study is among the few attempts to examine this issue at the provincial level of a developing country considering the moderation effect of institutional quality and human capital level.