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The purpose of this paper is to examine the relationship between the quality of different dimensions of institutional and economic growth in a panel of 15 member ECOWAS.

The study adopts Driscoll and Kraay′s nonparametric covariance matrix estimator, and the spatial error model to account for cross-section dependency, cross-country heterogeneity and spatial dependence inherent in empirical modelling, which has largely been ignored in previous studies. This is because, the likelihood that corruption and human capital cluster in space is very high because factors that affect these phenomena disperse across borders. Similarly, to test the threshold effect, the study adopts the more refined and more appropriate dynamic panel data which models a nonlinear asymmetric dynamics and cross-sectional heterogeneity, simultaneously, in a dynamic threshold panel data framework.

The empirical evidence supports findings by previous researchers that better-quality political and economic institutions can have positive effects on economic growth. Similarly, our results support a nonlinear relationship between political institutions and economic institution, confirming the “hierarchy of institution hypothesis” in ECOWAS. Specifically, the findings show that economic institutions will only have the desired economic outcome in ECOWAS, only when political institution is above a certain threshold.

Unlike previous studies which assume cross-sectional and spatial independence, the authors account for cross-section dependency and cross-country heterogeneity inherent in empirical modelling.

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-10-2019-0630

This study aims to examine the linear and nonlinear remittance–institutional quality link in developing countries.

This study investigates the nonlinear relationship between remittance and political institutional quality in a panel of 97 developing countries using annual data of over nine years from 2009 to 2017. The estimated model uses system generalized method of moments for three political institutions indicators, namely, democracy, political stability and civil liberties.

The results revealed that remittance has a significant inverted U-shape impact on political institution’s indicators. Therefore, before the turning point, remittance is associated with high level of democracy, more stable political system and more civil freedom. While moving after the turning point indicates low level of political institution in the country.

The authors certify that this is the original paper. It has not been previously published and is not currently under submission or in press elsewhere.

The purpose of this paper is to examine the significant association between political institutions and the control of corruption.

This study uses ordinary least squares model to examine the following: quality of political institutions; the association between the strength of democratic institutions and control of corruption; the association between government effectiveness and control of corruption; and the association between legal institutions and control of corruption.

The result shows that there is positive association between democratic institutions, government bureaucracy and rule of law with the control of corruption. From the political perspective, stronger democratic institutions are found to be associated with higher ability to control corruption in a country. When viewed from country’s economic and social well-being perspective, highly effective government bureaucracy is positively associated with ability to control corruption. Finally, rule of law is also associated with the control of corruption.

This study points toward clear priorities for reform as stronger democratic institutions, efficient government bureaucracy and adherence to the rule of law improve the control of corruption. The results show that stronger democratic institutions, highly effective government bureaucracy and rule of law are associated with higher control of corruption. This supports the theory that quality political institutions reduce corruption in the long-run. In addition, this study shows that press freedom, regulatory quality and political stability further enhance the capacity of such institutions to combat corruption. Conversely, crony capitalism systems undermine this positive association.

This chapter contributes to the existing literature on institutional theory and international business research by integrating the concepts of polycentrism and institutional learning to examine how MNEs from emerging economies invest in developed countries. We argue that equity-based market entry modes and non-equity-based modes create different needs for learning about economic, regulatory and political institutions; entry modes with or without local partners lead to different levels of institutional embeddedness and institutional learning speeds. Finally, the content of institutional knowledge also determines its transferability and adaptability. We emphasize the importance of recognizing the integrated nature of economic, regulatory and political institutions from a polycentric perspective and discuss their change in different situations.

This study assessed the role of political institutions in the relationship between economic institutions and public debt in Sub-Saharan Africa.

Based on data availability, the study was done for 40 Sub-Saharan African countries from 2010 to 2019 employing generalized method of moment.

The authors documented a negative and significant relationship between economic institutions and public debt as well as a negative and significant effect of political institutions on public debt in SSA. Also, the study recorded that political institutions play a negative and significant role in the economic institutions-public debt nexus in Sub-Saharan Africa. However, a threshold of 3.691 is given when it comes to the role of political institutions in the association between government spending and public debt nexus in SSA.

The authors failed to take certain indicators of economic institutions, such as freedom to trade internationally, the size of government and legal system and property into consideration.

The authors suggest that democracy is necessary for boosting economic institutions-induced public debt reduction in SSA.

The novelty of this study is evident in two ways: first, the authors assessed the relationship between economic institutions and public debt in SSA using novel measures such as government integrity, tax burden and government spending from the Heritage Foundation instead of traditional institution measures from World Governance Indicators used by earlier studies. The authors further contribute to literature by being the first to consider the foundational role of political institutions in employing economic institutions to fight high public debt in SSA. Again, the authors included the threshold at which political institutions can cause economic institutions to have a desired impact on public debt in SSA.

This cross-border study’s main purpose is to examine whether there is a significant association between political institutions and the cost of debt. In addition, it also investigates whether this association is moderated by the country’s corruption levels.

This study uses a unique cross-border data set comprising 45,848 firms from 117 countries from 2002 to 2017 to investigate these research questions. Further, the authors use the two-stage least squares method to mitigate issues of endogeneity.

This study finds that political institutions are significantly associated with cost of debt. Specifically, the cost of debt is lower in countries with stronger democratic institutions, smaller government bureaucracies and higher adherence to the rule of law. Further, this association is strengthened by low corruption levels.

This study provides new insights into the relationship between political institutions and the cost of debt. Overall, the results reveal that democratic institutions, government bureaucracy and the rule of law are significantly associated with cost of debt. This association is stronger in countries with low levels of corruption and consistent with Transparency’s International notion that accountability and transparency by government political institutions promote sustainable economic growth.

The purpose of this paper is to analyze the association between political party preference and trust in knowledge-based institutions, while also considering how political trust facilitates the association. The authors focus on the opinions of supporters of the six largest parliamentary political parties in Finland.

The data are based on a population level survey. First, the authors compared party supporters’ trust in universities and YLE media. Second, the authors analyzed how political trust contributes to party supporters’ trust in knowledge-based institutions by estimating predicted probabilities. Third, the authors derived the partial correlations from the non-linear probability models incorporated separately between trust in YLE, Universities and political trust, and compared the correlations across the parties. Finally, the authors conducted the logit models from which the authors post-estimated the predicted probabilities of having high trust in YLE and Universities according to the levels of political trust separately for each party.

The results showed a cumulation of trust, reflecting especially on the attitudes of the populist party supporters who tended to have lower trust in knowledge-based institutions and distrust was highly associated with low political trust. This cumulation of trust shows an interesting dynamic in how closely institutions are linked together in terms of attitudes on their legitimacy.

This study assesses the cumulation of distrust, while providing an alternative political spectrum to the US two party system that has been the major focus of past research. Furthermore, the study fills a gap in the research by being the first to assess the intersection of the trust dimensions.

This paper aims to analyse how democratic institutions affects social spending formations in the context of developing countries. Furthermore, this essay will also challenge the theory that the government system (majoritarian versus consensus democracy) influences the magnitude of social spending and welfare commitment, especially in Southeast Asian democracies, namely, Indonesia, Malaysia, Thailand and the Philippines.

This research uses descriptive statistics and qualitative data to match social spending with the development of democratisation in four cases.

The main argument is whether the presence of democratic institutions encourages the government to be more open, citizen-oriented and responsive or whether the inclusive political conditions will create more open public participation in the policymaking process. Thus, in the context of developing countries, public participation will be more likely to demand social policies.

It has not been able to undertake a more detailed impact evaluation assessment of the development and change of democratic institutions towards policy outcomes within a shorter temporal scope. In addition, this thesis does not also provide details or explanations about the interaction process between particular democratic institutions and specific social policy sectors.

The process of interactions between particular electoral systems. For instance, the contribution to the emergence of policy in the health services sector or conducting research in normative democratic institutions such as public awareness of the importance of public participation in shaping and directing the implementation of poverty reduction policies could be studied, by using the historical institutionalism approach.

The impact of certain political institutions on public policy has become a very important discussion in the new institutionalism perspective. Social policy (social spending) as a manifestation of government’s commitment towards welfare is the result of institutional arrangement. In the context of developing countries, where social policy is needed to fulfill the basic needs of citizens, it is important to identify what kind of institutional formations are conducive to the development of social policy. This essay will analyse how democratic institutions affects social spending formations in the context of developing countries.