INSTITUTIONAL QUALITY AND SUSTAINABLE DEVELOPMENT: A QUANTITATIVE ANALYSIS

Abstract

The aim of this study is to investigate the impact of institutional quality on sustainable development. The presence of corruption, weak rule of law and the inadequacy of regulatory frameworks instigate this study. The study specified a model where gross domestic product per capita was the dependent variable and institutional quality (voice and accountability, rule of law, control of corruption and regulatory quality) were the independent variables. Fully Modified Ordinary Least Square (FMOLS) and Dynamic Ordinary Least Square (DOLS) and co-integrating regression (CRR) were applied to the annual time-series data gathered on the variables from 1996-2024; the results revealed that institutional quality and sustainable economic development had a positive relationship. Specifically, amongst other things control of corruption, regulatory quality where found to have a positive and significant impact during the period under review. The study therefore recommends the strengthening of institutions to foster economic growth and development now and in the future.