Business and Economic Horizons

  Previous Article | Back to Volume | Next Article
  Abstract | References | Citation | Download | Preview | Statistics
Volume 14
Issue 2
Online publication date 2018-02-22
Title Income differences, trade and Institutions: empirical evidence form low and middle-income countries
Author Agus Eko Sujianto, Tulus Suryanto
Many developing countries attained high growth rates in different periods but income differences did not reduce significantly in these periods due to increase in income inequalities. Therefore, the key objective of this study was to analyze the relationship between income differences, trade and institutions in developing countries. This study has used panel data of the year 2000 to 2014 to explore the relationship between these variables. This study is based on sampling of two groups; 25 middle income countries and 24 low income countries. Pooled OLS, panel fixed effect and Driscoll and Kraay techniques were used in this study. The results showed the negative relations of imports, a significant role of political institutions and insignificant role of economic institutions in income distribution with GDP per capita among low income and middle-income countries. Moreover, the current study suggested that governments in developing countries should focus upon improving the performance of political and economic institutions in order to improve their prospects of getting investment opportunities.  
Abidin, I. S. Z., Bakar, N. A. A., & Haseeb, M. (2014). An empirical analysis of exports between Malaysia and TPP member countries: Evidence from a panel cointegration (FMOLS) model. Modern Applied Science, 8(6), 238-249. 

Abidin, I. S. Z., Bakar, N. A. A., & Haseeb, M. (2015). Exploring trade relationship between Malaysia and the OIC member countries: a panel cointegration approach (1995-2012). Asian Journal of Scientific Research, 8(1), 107-121. 

Abidin, I. S. Z., Haseeb, M., Azam, M., & Islam, R. (2015). Foreign direct investment, financial development, international trade and energy consumption: panel data evidence from selected ASEAN countries. International Journal of Energy Economics and Policy, 5(3), 841-850. 

Abidin, I. S. Z., Haseeb, M., & Islam, R. (2016). Regional integration of the Association of Southeast Asian Nations Economic Community: an analysis of Malaysia-Association of Southeast Asian Nations exports. International Journal of Economics and Financial Issues, 6(2), 646-652. 

Acemoglu, D., Johnson, S., & Robinson, J. A. (2005). Institutions as a fundamental cause of long-run growth. Handbook of Economic Growth, 1, 385-472. 

Bakar, N. A. A., Abidin, I. S. Z., & Haseeb, M. (2015). Investigating exports performance between Malaysia and OIC member countries from 1997-2012. Asian Social Science, 11(7), 11-18. 

Berg, A., & Krueger, A. O. (2003). Trade, growth, and poverty: a selective survey. Paper presented at the Annual World Bank Conference on Development Economics.

Berg, A. G., & Osrty, J. D. (2013). Inequality and unsustainable growth: two sides of the same coin? International Organisations Research Journal, 8(4), 77-99. 

Bittman, B., Davies, A., Russell, W. B., & Goussakova, E. (2017). Advance placement and the achievement gap in the 21st century: a multiple linear regression of marginalized populations in AP Enrolment. Research in Social Sciences and Technology, 2(2), 36-58. 

Cotet, A., & Tsui, K. K. (2009). Resource curse or Malthusian trap? Evidence from oil discoveries and extractions. Manuscript. Clemson University. Retrieved March 10, 2018, from

Dobler, C. (2009). The impact of formal and informal institutions on per capita income (Discussion Paper. Hohenheimer Diskussionsbeiträge, No 319), University of Hohenheim, Stuttgart.

Dollar, D., & Kraay, A. (2003). Institutions, trade, and growth. Journal of Monetary Economics, 50(1), 133-162. 

Haq, R., & Zia, U. (2009). Does governance contribute to pro-poor growth? Evidence from Pakistan. Pakistan Institute of Development Economics.

Mehmood, S. (2012). Effect of different factors on gross domestic product: a comparative study of Pakistan and Bangladesh. Academy of Contemporary Research Journal, 1(1), 18-35. 

Ravallion, M. (2004). Pro-poor growth: A primer (World Bank Policy Research Working Paper No. 3242).

Stiglitz, J. E. (2012). Macroeconomic fluctuations, inequality, and human development. Journal of Human Development and Capabilities, 13(1), 31-58. 

Suryanto, T. (2016). Dividend policy, information technology, accounting reporting to investor reaction and fraud prevention. International Journal of Economic Perspectives, 10(1), 138-150. 

Suryanto, T., & Ridwansyah, R. (2016). The Shariah financial accounting standards: How they prevent fraud in Islamic Banking. European Research Studies, 19(4), 140-157. 

Tarman, B. (2010). Social studies education and a new social studies movement. Journal of Social Studies Education Research, 1(1), 1-16.

Uddin, J., & Joya, L. A. (2007). Development through good governance: lessons for developing countries. Asian Affairs, 29(3), 1-28. 

Zouhaier, H., & Karim, K. M. (2012). Democracy, investment and economic growth. International Journal of Economics and Financial Issues, 2(3), 233-240.

Keywords Population, investment, political institutions, Human Development Index, economic institutions, GDP
Pages 217-228
Download Full PDF Download
  Previous Article | Back to Volume | Next Article
Search in articles
Journal Published articles
BEH 626
Journal Hits
BEH 1652558
Journal Downloads
BEH 48759
Total users online -