Role of Institutions on Export Led Growth: The Cases of Developed and Developing Countries
Hamza Cestepe, Gizem Mukiyen Avci, Hilal Yildiz
article (Uluslararası, Hakemli) | Yazar(lar): Hamza Cestepe, Gizem Mukiyen Avci, Hilal Yildiz | Yıl: 2019 | Dergi/Kurum: MALIYE DERGISI | İndeks: WOS.ESCI | Anahtar Kelimeler: Export Led Growth, Institutional Economics, Dynamic Panel Data, System GMM — Özet: The aim of the study is to investigate the role of institutio
The aim of the study is to investigate the role of institutional factors on the relationship between exports and growth. In the study, the system GMM estimation method is used on dynamic panel data for 42 developing and 33 developed countries during the period of 1985-2014. Findings show that there is a significant and positive relationship between exports and economic growth in both country groups, and an improvement on the institutional structure of countries will further strengthen this relationship. In terms of institutional sub-components, it is observed that religion deconfliction is more important than other institutional variables in both country groups; and institutional arrangements on law and order for developing countries while socioeconomic conditions for developed countries are revealed to be more useful for that relationship.