Jurnal Ekonomi Pembangunan
Vol 19, No 1 (2021): Jurnal Ekonomi Pembangunan

The Impact of the Institution on Economic Growth: An Evidence from ASEAN

Vita Kartika Sari (Faculty of Economics and Business, Universitas Sebelas Maret, Central Java)
Dwi Prastyani (Faculty of Economics and Business, Universitas Sebelas Maret, Central Java)



Article Info

Publish Date
03 Jul 2021

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.

Copyrights © 2021






Journal Info

Abbrev

jep

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Ekonomi Pembangunan is a peer-reviewed journal that provides a forum for scientific works pertaining to Development Economics. Published twice in a year (June and December). This Journal has p-ISSN 1829-5843, and e-ISSN 2685-0788. This journal was first published since June 2003 by the ...