Jurnal Ekonomika Manajemen Dan Bisnis
Vol. 5 No. 1 (2026): Januari - Juni

Mapping Global Institutional Typologies: A Hierarchical Clustering Approach to Inclusive–Extractive Governance

Yahya Ayasi (Development Economics, Faculty of Economics and Business, University of Lampung)
Dedy Yuliawan (Development Economics, Faculty of Economics and Business, University of Lampung)



Article Info

Publish Date
29 May 2026

Abstract

Cross-country income disparities remain a central puzzle in institutional economics, yet most clustering studies are regionally confined or rely on binary classifications that obscure the multidimensional nature of institutional variation.  This study constructs a global institutional typology for 100 countries across all major world regions and maps Indonesia's governance profile within it.  Hierarchical Clustering Analysis (HCA) was applied to 2023 cross-sectional data using five Worldwide Governance Indicators (WGI) — Voice and Accountability, Political Stability, Government Effectiveness, Regulatory Quality, and Rule of Law alongside the inverted Corruption Perceptions Index (CPI_rev), replacing the redundant Control of Corruption dimension. Countries were selected through purposive sampling ensuring geographic and developmental representativeness, with z-score standardization, Euclidean distance, and Ward.D linkage validated by silhouette width. Two robust clusters emerged: an extractive-tending group (n = 62, mean GDP per capita USD 19,599 PPP) and an inclusive-tending group (n = 38, mean GDP per capita USD 64,720 PPP), a 3.3-fold income gap consistent with Acemoglu and Robinson's (2012) framework. Indonesia's placement in Cluster 1 reveals a paradox: strong democratic and state-capacity indicators coexist with below-average income, with corruption (CPI_rev = 66.00) and weak rule of law as binding constraints. For extractive-tending countries, corruption control emerges as the most urgent reform priority, while inclusive-tending countries should focus on sustaining institutional quality to maintain long-run economic performance. Indonesia's post-reformasi gains require deeper judicial reform and anti-corruption enforcement to translate governance improvements into inclusive economic outcomes.

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Journal Info

Abbrev

jemb

Publisher

Subject

Economics, Econometrics & Finance Education

Description

Jurnal Ekonomi Manajemen dan Bisnis (JEMB) (E-ISSN : 2962-9322) diterbitkan oleh CV.ITTC INDONESIA. JEMB menyediakan forum bagi Mahasiswa dan Dosen untuk mengeksplorasi masalah dan merefleksikan penelitian kuantitatif. JEMB adalah jurnal daring yang didedikasikan untuk publikasi penelitian ...