Economics at your fingertips  

Institutional infrastructure and economic growth in member countries of the Organization of Islamic Cooperation (OIC)

Ly Slesman (), Ahmad Zubaidi Baharumshah () and Wahabuddin Ra'ees

Economic Modelling, 2015, vol. 51, issue C, 214-226

Abstract: This paper examines the relationship between the quality of different dimensions of institutional infrastructure and economic growth in a panel of 39 member countries of the Organization of Islamic Cooperation (OIC). The empirical results confirm that better-quality political and economic institutions can have positive effects on economic growth. All in all, the evidence from nonlinear model reveals that the quality of political institutions that ensure stable government, less expropriation, and low external conflict are the core dimensions of an institutional matrix because they influence the growth effects of economic institutions, confirming the “hierarchy of institutions hypothesis.” The study also finds that when political and economic institutions are accounted for, institutions that prevent internal conflict and tensions arising from ethnic and religious conflicts do not have significant (positive) impacts on growth. Thus, institutional reforms to upgrade the quality of both political and economic institutions are crucial for development in OIC countries.

Keywords: Conflict-preventing institutions; Dynamic panel threshold model; Economic growth; Economic institutions; Organization of Islamic Cooperation; Political institutions (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-10-22
Handle: RePEc:eee:ecmode:v:51:y:2015:i:c:p:214-226