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

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DOI: https://doi.org/10.28924/2291-8639-24-2026-169
Published: May 29, 2026
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Thu-Trang Thi Doan, Analyzing the Impact of Institutional Quality on Economic Growth in Developing Countries in Asia: A Panel Data Approach, Int. J. Anal. Appl., 24 (2026), 169.

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Thu-Trang Thi Doan

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.

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