Vol. 14 No. 3 (2026): Business & Management Studies: An International Journal
Articles

The relationship between globalization, institutional quality and economic growth: an interactive panel data analysis in selected developing and emerging market economies

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  • Abdullah Yıldız
Abdullah Yıldız
Assist. Prof. Dr., Iskenderun Technical University, Iskenderun, Türkiye

Published 2026-09-25

Keywords

  • Globalization, Institutional Quality, Economic Growth, KOF Globalisation Index, Panel Data Analysis
  • Küreselleşme, Kurumsal Kalite, Ekonomik Büyüme, KOF Küreselleşme Endeksi, Panel Veri Analizi

How to Cite

The relationship between globalization, institutional quality and economic growth: an interactive panel data analysis in selected developing and emerging market economies. (2026). Business & Management Studies: An International Journal, 14(3), 1625-1643. https://doi.org/10.15295/bmij.v14i3.2827

Copyright (c) 2026 Abdullah Yıldız

Creative Commons License

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

How to Cite

The relationship between globalization, institutional quality and economic growth: an interactive panel data analysis in selected developing and emerging market economies. (2026). Business & Management Studies: An International Journal, 14(3), 1625-1643. https://doi.org/10.15295/bmij.v14i3.2827

Abstract

This study examines the relationship between globalization, institutional quality, and economic growth in 20 developing and emerging market economies over 1996–2023 using panel data methods. Economic growth is measured by annual real GDP growth, globalization by the KOF Globalisation Index, and institutional quality by a composite index based on the Rule of Law, Government Effectiveness, and Regulatory Quality indicators. Foreign direct investment, trade openness, gross capital formation, and inflation are included as controls. The main estimates rely on random-effects models with country-clustered robust standard errors, while Driscoll–Kraay fixed-effects estimates are used for robustness. Institutional-quality improvements and gross capital formation are positively associated with growth, whereas inflation is negatively associated. The globalization-change coefficient is weakly significant at the 10% level in Model 2 under clustered standard errors, but this result does not persist in robustness checks. The globalization–institutional quality interaction is positive but not statistically robust.

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