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Analyzing the Impact of Institutional Quality on Economic Growth in Developing Countries in Asia: A Panel Data Approach

International Journal of Analysis and Applications | 2026

Paper Details

Authors: Doan T.-T.T.

DOI: 10.28924/2291-8639-24-2026-169

Journal: International Journal of Analysis and Applications

Year: 2026

Publisher: Etamaths Publishing

Document Type: Article

Open Access: All Open Access; Gold Open Access

Cited by: 0

Abstract

This study examines the impact of institutional quality on economic growth in 34 Asian developing countries. To achieve this objective, a Bayesian approach is employed to estimate the research model, allowing for an in-depth assessment of the effects of the explanatory variables as well as the probability of these effects occurring. The results reveal that institutional quality has a positive effect on economic growth, with the probability being relatively certain. To test robustness, institutional quality is measured using two different approaches which both generate consistent results. In addition, economic growth is found to be positively influenced by foreign direct investment and inflation, while population growth exerts a negative impact. These findings provide reliable evidence for developing Asian countries in formulating appropriate policy measures to improve institutional quality in order to support sustainable economic growth. © 2026 the author(s).

Keywords

and phrases. Asia; Bayesian; developing countries; economic growth; institutional quality