Nonlinear impact of institutional quality on economic performance among CPTPP countries


Chong, Choy Yoke (2019) Nonlinear impact of institutional quality on economic performance among CPTPP countries. In: Conference on Managing Digital Industry, Technology, and Entrepreneurship (CoMDITE 2019), 10-11 July 2019, Telkom University, Bandung, Indonesia.

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Institutions are the fundamental determinant of economic growth. Therefore, a high quality of institution among the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) countries will be important to ensure continuing economic performance aftter the withdrawal of US from the TPP Agreement. This study aims to investigate how institutional quality can improve the economic performance of member countries within CPTPP. Unbalanced panel data for 10 members of CPTPP (without Brunei) covering from year 2002 to 2015 were analyzed using the Least Square Dummy Variable (LSDV) model. An inverted-U shape of relationship was detected implying a nonlinear impact of institutional quality on the economic performance. Better overall quality of institutions helps to boost economic performance. However, a reverse relationship was found when institutional quality surpasses the level of 0.638. Therefore, CPTPP countries can enhance their economic performance if their institutional quality to be kept below the threshold value.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: economic growth
Subjects: H Social Sciences > HB Economic theory. Demography > HB75-130 History of economics. History of economic theory
Divisions: Faculty of Management (FOM)
Depositing User: Ms Rosnani Abd Wahab
Date Deposited: 27 Jan 2022 01:53
Last Modified: 27 Jan 2022 01:53


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