Institutional quality and economic growth: Empirical evidence from the Sudanese economy

• Main Authors: Alexiou Constantinos, Tsaliki Persefoni, Osman Hashim Rasha
• Format: Article
• Language: English
• Published: Faculty of Economics, Belgrade 2014-01-01
• Series: Ekonomski Anali
• Subjects: institutions quality; economic performance; Sudan; ARDL cointegration
• Online Access: http://www.doiserbia.nb.rs/img/doi/0013-3264/2014/0013-32641403119A.pdf

This study aims to explore the extent to which conventional methods used in the majority of relevant growth studies can successfully interpret the economic performance of a highly underdeveloped African country such as Sudan. Applying an ARDL boundstesting approach to cointegration proposed by Pesaran et al. (2001), we look into the short-run as well as long-run relationships between institutional and various other key economic variables and economic growth over the period 1972-2008. The empirical results obtained suggest that, for the Sudanese economy, the quality of the institutional environment is one of the most important factors in defining economic prosperity.