The Composite Impact of Institutional Quality and Inequality on Economic Growth

Neelum Nigar


The relationship between institutions and economic growth has
attracted significant attention in recent years with the dominant view
being that institutional quality positively influences economic
performance of a country. However, the impact of similar kind of
institutions on economic growth varies across regions and countries.
Various reasons including, Income inequality and ethnic fragmentation
have been put forth as proximate cause of the weaker relationship
between institutions and economic growth [Easterly, et. al (2006);
Ann-Sofie (2007)]. However not enough literature is available on why the
impact of similar set of institutions on growth varies across countries
and regions. Given that inequality may weaken the impact of
institutional quality on growth, this study seeks to examine the
composite impact of institutional quality and inequality on growth in
selected Asian economies

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