Institutional performance and its impact on economic growth in ASEAN countries: trend and panel data analysis
- Authors: Rizki S.W.1, Didenko N.I.1
-
Affiliations:
- Peter the Great Saint Petersburg Polytechnic University
- Issue: Vol 33, No 2 (2025): ASIAN AND AFRICAN COUNTRIES IN A MULTIPOLAR WORLD
- Pages: 285-303
- Section: Developed and developing countries economy
- URL: https://journals.rcsi.science/2313-2329/article/view/324360
- DOI: https://doi.org/10.22363/2313-2329-2025-33-2-285-303
- EDN: https://elibrary.ru/AROVGN
- ID: 324360
Cite item
Full Text
Abstract
This study is conducted to expect how deep the institutional impact is on economic growth in ASEAN and recommend it as a reference for enchanting policies that can strengthen economic growth. This research will investigate and determine the institutional indicators that are significant to economic growth. The study also put additional variables expected contribute to economic development, such as import and export as predictive variables. The study implies trend analysis used to reveal the performance of institutions and panel data analysis applied to determine the most significant WGI indicators for ASEAN economic growth. Trend visualization indicates Singapore and Brunei Darussalam performed the best score in almost entire institutional indicators. Thus, panel analysis discloses that export, import, and regulatory quality are selected as the most significant variables in economic growth. The regulatory quality is an indicator of institutional strength reflecting the observation of the government’s capacity to advance inclusive policies to encourage the enlargement of the private sector. The decision is made by considering p-value is less than alpha value and rejecting null hypothesis. The alpha value representing an error probability is selected to make a decision. In brief, it recommends policymakers in developing regulations and executing more effective policies to promote private sector development. The result provides the comparatively modest R-squared value of 0.25247. In upcoming research, the R-squared value can be enhanced by including more independent variables. That additional variables expected can support regulatory quality such as interest rates and investment. Lastly, this study provides the latest insight of the economic development picture in ASEAN after challenging time of the Covid-19.
About the authors
Setyo Wira Rizki
Peter the Great Saint Petersburg Polytechnic University
Author for correspondence.
Email: rizki.sv@edu.spbstu.ru
ORCID iD: 0000-0003-0829-9767
PhD Student, Institute of Industrial Management, Economics and Trade
29 B Polytechnicheskaya St., Saint Petersburg, 195251, Russian FederationNikolay I. Didenko
Peter the Great Saint Petersburg Polytechnic University
Email: didenko.nikolay@mail.ru
ORCID iD: 0000-0001-8540-7034
SPIN-code: 3512-5410
Doctor of Economics, Professor, Institute of Industrial Management, Economics and Trade
29 B Polytechnicheskaya St., Saint Petersburg, 195251, Russian FederationReferences
- Aparicio, S., Urbano, D., & Audretsch, D. (2016). Institutional factors, opportunity entrepreneurship and economic growth: Panel data evidence. Technological Forecasting and Social Change, 102, 45–61. https://doi.org/10.1016/j.techfore.2015.04.006
- Aziz, M.N., & Sundarasen, S.D.D. (2015). The impact of political regime and governance on ASEAN economic growth. Southeast Asian Economies, 32(3), 375–389. https://doi.org/10.1355/ae32-3e
- Bernardelli, M., Próchniak, M., & Witkowski, B. (2021). Time stability of the impact of institutions on economic growth and real convergence of the EU countries: Implications from the hidden Markov models analysis. Equilibrium. Quarterly Journal of Economics and Economic Policy, 16(2), 285–323. https://doi.org/10.24136/eq.2021.011 EDN: SRONEJ
- Bowden, B. (2020). Economic foundations: Adam Smith and the classical school of economics. In The Palgrave Handbook of Management History (pp. 345–365). Springer International Publishing. https://doi.org/10.1007/978-3-319-62114-2_20
- Buracom, P. (2014). ASEAN Economic performance, institutional effectiveness, and foreign direct investment. Asian Affairs (UK), 41(3), 108–126. https://doi.org/10.1080/00927678.2014.936801
- Commendatore, P. (2003). On the post Keynesian theory of growth and “Institutional” distribution. Review of Political Economy, 15(2), 193–209. https://doi.org/10.1080/0953825032000064887 EDN: DWUWUF
- D’Aloia, F., & Gugler, P. (2024). Impact of Covid-19 on the economic growth of ASEAN countries: Convergence or divergence? International Journal of Global Business and Competitiveness. https://doi.org/10.1007/s42943-024-00098-2 EDN: IUEGJX
- Davies, W. (2015). The return of social government: From ‘socialist calculation’ to ‘social analytics.’ European Journal of Social Theory, 18(4), 431–450. https://doi.org/10.1177/1368431015578044
- Ferrari-Filho, F., & Conceição, O.A.C. (2005). The concept of uncertainty in post Keynesian theory and in institutional economics. Journal of Economic Issues, 39(3), 579–594. https://doi.org/10.1080/00213624.2005.11506835
- Gallego-álvarez, I., Rodríguez-Rosa, M., & Vicente-Galindo, P. (2021). Are worldwide governance indicators stable or do they change over time? A comparative study using multivariate analysis. Mathematics, 9. https://doi.org/10.3390/math9243257 EDN: FDYVUR
- Haini, H. (2020). Examining the relationship between finance, institutions and economic growth: evidence from the ASEAN economies. Economic Change and Restructuring, 53(4), 519–542. https://doi.org/10.1007/s10644-019-09257-5 EDN: DMDRNP
- Handoyo, S. (2023). Worldwide governance indicators: Cross country data set 2012–2022. Data in Brief, 51. https://doi.org/10.1016/j.dib.2023.109814 EDN: VAIKFU
- Haug, N., Geyrhofer, L., Londei, A., Dervic, E., Desvars-Larrive, A., Loreto, V., Pinior, B., Thurner, S., & Klimek, P. (2020). Ranking the effectiveness of worldwide COVID-19 government interventions. Nature Human Behaviour, (4), 1303–1312. https://doi.org/10.1038/s41562-020-01009-0 EDN: GOIRBP
- Henningsen, A., & Henningsen, G. (2019). Analysis of panel data using R. In Panel Data Econometrics: Theory (pp. 345–396). Elsevier. https://doi.org/10.1016/B978-0-12-814367-4.00012-5
- Hussen, M.S. (2023). Institutional quality and economic growth in Sub-Saharan Africa: a panel data approach. Journal of Economics and Development, 25(4), 332–348. https://doi.org/10.1108/JED-11-2022-0231 EDN: OYCQBO
- Kaufmann, D., Kraay, A., & Mastruzzi, M. (2011). The worldwide governance indicators: Methodology and analytical issues. Hague Journal on the Rule of Law, 3(2), 220–246. https://doi.org/10.1017/S1876404511200046 EDN: XBFMMS
- Klarin, T. (2018). The concept of sustainable development: From its beginning to the contemporary issues. Zagreb International Review of Economics and Business, 21(1), 67–94. https://doi.org/10.2478/zireb-2018-0005
- Kuznets, S. (1977). Two Centuries of Economic Growth: Reflections on U.S. Experience.
- Liang, J., Yin, Z., Yang, J., Li, Y., Xu, M., Li, J., Yang, M., & Niu, L. (2022). Bibliometrics and visualization analysis of research in the field of sustainable development of the blue economy (2006–2021). Frontiers in Marine Science, 9. https://doi.org/10.3389/fmars.2022.936612 EDN: TPJCHS
- Midway, S.R. (2020). Principles of effective data visualization. Patterns, 1 (9). https://doi.org/10.1016/j.patter.2020.100141 EDN: KUNXLE
- Muldoon, J. (2022). A socialist republican theory of freedom and government. European Journal of Political Theory, 21(1), 47–67. https://doi.org/10.1177/1474885119847606
- O’Donnell, R. (2022). Keynes and Smith, opponents or allies? Part I: Keynes on Smith. Review of Political Economy, 34(1), 69–92. https://doi.org/10.1080/09538259.2021.1882185 EDN: OZPRCD
- Qin, X., Luo, Y., Tang, N., & Li, G. (2020). Making data visualization more efficient and effective: a survey. VLDB Journal, 29(1), 93–117. https://doi.org/10.1007/s00778-019-00588-3 EDN: TZIDRA
- Sadaf, R., Oláh, J., Popp, J., & Máté, D. (2018). An investigation of the influence of the worldwide governance and competitiveness on accounting fraud cases: A cross-country perspective. Sustainability (Switzerland), 10 (3). https://doi.org/10.3390/su10030588
- Sagarik, D. (2017). Size of Government, Effectiveness and Socioeconomic Development: A Comparative Analysis of ASEAN Countries. Journal of Comparative Asian Development, 16(2), 91–112. https://doi.org/10.1080/15339114.2017.1334565
- Salman, M., Long, X., Dauda, L., & Mensah, C.N. (2019). The impact of institutional quality on economic growth and carbon emissions: Evidence from Indonesia, South Korea and Thailand. Journal of Cleaner Production, 241. https://doi.org/10.1016/j.jclepro.2019.118331
- Sari, V.K., & Prastyani, D. (2021). the impact of the institution on economic growth: An evidence from ASEAN. Jurnal Ekonomi Pembangunan, 19(1), 17–26. https://doi.org/10.29259/jep.v19i1.12793 EDN: NVKWHG
- Sidek, N.Z.M., & Asutay, M. (2020). Do government expenditures and institutions drive growth? Evidence from developed and developing economies. Studies in Economics and Finance, 38(2), 400–440. https://doi.org/10.1108/SEF-10-2019-0412 EDN: QUKUFY
- Smith, V.L., & Smith, A. (1997). The two Faces of Adam Smith. Distinguished Guest Lecturer. Southern Economic JurnaI1998, 65(1), 20.
- Ucak, A. (2015). Adam Smith: the inspirer of modern growth theories. Procedia — Social and Behavioral Sciences, 195, 663–672. https://doi.org/10.1016/j.sbspro.2015.06.258
- Zhao, J. (2024). How do innovation factor allocation and institutional environment affect high-quality economic development? Evidence from China. Journal of Innovation and Knowledge, 9(2). https://doi.org/10.1016/j.jik.2024.100475 EDN: CGAWYV
Supplementary files
