Investigating The Connection Between Government Efficiency, Regulatory Quality, And Trade-Driven Economic Growth
Dr. Ahmed K. Ali
Department of Economics, University of Maroua, Cameroon
Dr. Hadiya M. Hassan
Department of Economics, University of Maroua, Cameroon
Dr. Ibrahim S. Ahmad
Department of Economics, University of Maroua, Cameroon
Abstract
The pivotal role of institutions in economic development has been well-established in the literature since the 1990s. Scholars like North (1990), Mauro (1995), Engerman and Sokoloff (2003), and Dollar and Kraay (2003) have underscored the significance of quality institutions in fostering economic growth and enabling effective economic policy measures. While prior research has extensively examined the connections between institutions and trade, their impact on economic growth remains relatively understudied. This study bridges this gap by exploring the relationship between institutions, trade openness, and economic growth, drawing upon the frameworks of endogenous growth theory and the new theory of international trade. It acknowledges that trade openness can be a catalyst for economic growth, offering economies of scale and facilitating technology transfer. However, recent decades have witnessed disparities in economic performance between developed and developing countries, prompting a reassessment of the presumed positive effects of trade openness. This research contends that the quality of national institutions plays a crucial role in shaping a country's economic growth trajectory, potentially acting as a determining factor for its successful integration into global trade networks. By delving into the nuanced interplay of institutions, trade, and economic growth, this study aims to provide valuable insights for policymakers and researchers alike