INSTITUTIONAL QUALITY AND ECONOMIC GROWTH IN THE NON-EU POST-SOVIET COUNTRIES: DOES ENERGY ABUNDANCE MATTER?


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Gasimov I., Jabiyev F., Asgarzade G.

ECONOMICS & SOCIOLOGY, vol.16, no.2, pp.139-147, 2023 (ESCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 16 Issue: 2
  • Publication Date: 2023
  • Doi Number: 10.14254/2071-789x.2023/16-2/9
  • Journal Name: ECONOMICS & SOCIOLOGY
  • Journal Indexes: Emerging Sources Citation Index (ESCI), Scopus, ABI/INFORM, CAB Abstracts, EconLit, Veterinary Science Database, Directory of Open Access Journals
  • Page Numbers: pp.139-147
  • Azerbaijan State University of Economics (UNEC) Affiliated: Yes

Abstract

After regaining independence, most of the post-Soviet countries encountered socio-economic difficulties during the transition period. These challenges were also accompanied by low institutional quality. Some of the post-Soviet countries, such as Russia, Turkmenistan, Kazakhstan and Azerbaijan, can be categorized as energy-rich, while the remaining countries are non-rich in terms of energy. Thereby, the aim of this study is twofold: first, to analyze the impact of institutional quality on economic growth in the case of non-EU post-Soviet countries, and second, to determine whether there is any difference in the link of institutional quality and economic growth between the energy-rich and non-rich sample countries. Two-Stage Least Squares reveal a U-shaped association between institutional environment and economic growth. Furthermore, the results suggest that this impact is lower in the energy-rich countries compared with their non-rich counterparts. With regards to the control variables, the findings indicate a positive and statistically significant impact of openness on economic growth. Finally, there is a negative association between the remaining control variables, such as inflation, population growth rate and the dependent variable.