DRIVERS OF ECONOMIC PERFORMANCE: DO INSTITUTIONAL QUALITY AND FINANCIAL LIBERALIZATION MATTER? EVIDENCE FROM SANE AND ASIAN TIGERS

Authors

  • Nzeh, Innocent Chile 1Department of Cooperative and Rural Development, University of Agriculture and Environmental Sciences, Umuagwo, Imo State, Nigeria.
  • Ogwuru, Hycenth Oguejiofoalu Richard Department of Economics, Novena University, Ogume Delta State, Nigeria
  • Izuogu, Augustine Chinedu Department of Criminology and Security Studies, University of Agriculture and Environmental Sciences, Umuagwo, Imo State, Nigeria
  • Ogaraku, Nneoma Bridget Establishment Unit, University of Agriculture and Environmental Sciences, Umuagwo, Imo State, Nigeria.

DOI:

https://doi.org/10.51594/ijmer.v5i2.442

Abstract

The aim of this study is to examine the impact of financial liberalization and institutional quality on the economic performance of the Asian Tigers and the SANE countries. The study used annual series that spanned the period from 1996-2020 under the framework of FMOLS. Findings of the study revealed that in the Asian Tigers, FDI inflows, FDI outflows, capital account openness and governance effectiveness had a positive and significant impact on the GDP per capita, but the impact of political stability was negative and significant. Results for the SANE countries indicated that both FDI inflows and trade openness impacted positively and significantly on the GDP per capita, while the impact of capital account openness was negative and significant. Consequently, the study is of the view that while it will be necessary for the SANE countries to upgrade their institutions in order to reap the benefits of financial openness, the Asian Tigers should stabilize their polity to improve their economy.

Keywords: Institutional quality, FDI, GDP per capita, Financial development, Trade openness, Asian Tigers.

JEL Classification: E02, F21, F43

Published

2023-02-06

Issue

Vol. 5 No. 2 (2023)

Section

Articles

Copyright (c) 2023 Nzeh, Innocent Chile, Ogwuru, Hycenth Oguejiofoalu Richard, Izuogu, Augustine Chinedu, Ogaraku, Nneoma Bridget

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Fair East Publishing has chosen to apply for the Creative Common Attribution Noncommercial 4.0 Licence (CC BY) license on our published work. Authors who wish to publish their manuscript in our journal agree on the following terms:
1. Authors retain the copyright and grant us (Fair East Publishing and its subsidiary journals) the right for first publication with the work licensed under a Creative Commons Attribution (CC BY) License which permits others to share the work with an acknowledgment of the work’s authorship and initial publication in this journal. Under this license, author retains the ownership of the copyright of their content, but anyone is allowed to download, reuse, reprint, modify, distribute, and/or copy the contents as long as the original authors and source are cited. No permission is required from the publishers or authors.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal’s published version of the work (for example, publishing it as a book or submitting it to an institutional repository), with an acknowledgment of its initial publication in Fair East Publishing owned journals.
3. We encourage our authors/contributors to post their work online (such as posting it on their website or some institutional repositories) prior to and during the submission process since it produces scholarly exchange and greater and earlier citation of published work.