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:: Volume 32, Issue 111 (quarterly journal of economic research and policies 2024) ::
qjerp 2024, 32(111): 198-228 Back to browse issues page
The Effect of Institutional Quality on Economic Performance: An Application of Global Trade Analysis Project Models
Fatemeh Gharibi , Mehrzad Ebrahimi * , Hashem Zare
Department of Economics, Faculty of Economics and Management, Shiraz Branch, Islamic Azad University , Mhrzad@yahoo.com
Abstract:   (546 Views)
Understanding the relationship between institutions and economic performance, as well as how institutional quality differs across countries, has attracted increasing attention in recent years. Northern countries support economic progress due to having strong institutions. On the other hand, weak institutions in southern countries prevent their progress. Therefore, it is very important for policymakers to identify the factors affecting institutional quality and to understand how institutional quality affects economic growth in order to develop efficient economic policies. The main motivation of the present study is to understand the effect of improving institutional quality on Iran's economic growth through total factor productivity using the Global Trade Analysis Project model. In this regard, the data were aggregated into two regions (Iran and the rest of the world) and ten sectors based on the research objective. To achieve the main objective of the study, two scenarios were evaluated: 1) Increasing the growth rate of production factor productivity in Iran (due to improving institutional quality); 2) Increasing the growth rate of production factor productivity in other regions of the world (due to improving institutional quality). The results show that improving institutional quality through increasing the growth rate of production factor productivity in Iran leads to higher economic growth in Iran and its sub-sectors.
Keywords: Institutional quality, Productivity growth, Economic growth, Global Trade Analysis Project
Full-Text [PDF 953 kb]   (172 Downloads)    
Type of Study: Research | Subject: Special
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Gharibi F, Ebrahimi M, Zare H. The Effect of Institutional Quality on Economic Performance: An Application of Global Trade Analysis Project Models. qjerp 2024; 32 (111) :198-228
URL: http://qjerp.ir/article-1-3637-en.html


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Volume 32, Issue 111 (quarterly journal of economic research and policies 2024) Back to browse issues page
فصلنامه پژوهشها و سیاستهای اقتصادی Journal of Economic Research and Policies
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