{"id":9289,"date":"2026-01-12T13:00:34","date_gmt":"2026-01-12T05:00:34","guid":{"rendered":"https:\/\/www.ukm.my\/jem\/?post_type=article&#038;p=9289"},"modified":"2026-04-30T14:57:51","modified_gmt":"2026-04-30T06:57:51","slug":"the-effect-of-institutional-quality-on-economic-growth-evidence-from-14-asia-pacific-economies","status":"publish","type":"article","link":"https:\/\/www.ukm.my\/jem\/article\/the-effect-of-institutional-quality-on-economic-growth-evidence-from-14-asia-pacific-economies\/","title":{"rendered":"The Effect of Institutional Quality on Economic Growth: Evidence from 14 Asia-Pacific Economies"},"content":{"rendered":"<p><em>This paper examines the impact of institutional quality on the economic growth of 14 Asia-Pacific economies using the Theory of Institutional Embeddedness. A multilayer statistical model was developed, incorporating economic and institutional layers with variables such as physical capital, labor force, political institution quality, legal institution quality, and economic institution quality. Data were obtained from the World Bank\u2019s World Governance Indicators and World Development Indicators, as well as the Heritage Foundation\u2019s Index of Economic Freedom, covering the period from 1996 to 2022. The random effects model revealed the heterogeneous impact of institutional quality on total factor productivity (TFP), capital, and labor efficiency among the economies. Political institution quality was found to negatively affect TFP and capital efficiency but positively influence labor efficiency. The results also showed that legal institution quality positively affects TFP and capital efficiency but negatively influences labor efficiency, while economic institution quality negatively affects TFP and capital efficiency but positively influences labor efficiency. Theoretically, the integration of embeddedness, institutional quality, and factor efficiency into economic growth in a multilayer model offers a novel contribution. The findings also provide valuable insights for policymakers, emphasizing that institutions can leverage TFP and factor efficiency to attain high-quality economic growth.<\/em><\/p>\n","protected":false},"template":"","tags":[665,186,2007,767],"jel-code":[],"article-type":[1329],"class_list":["entry","author-asriwn","post-9289","article","type-article","status-publish","tag-asia-pacific","tag-economic-growth","tag-embeddedness-theory","tag-institutional-quality","article-type-normal-article"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Effect of Institutional Quality on Economic Growth: Evidence from 14 Asia-Pacific Economies | Jurnal Ekonomi Malaysia<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ukm.my\/jem\/article\/the-effect-of-institutional-quality-on-economic-growth-evidence-from-14-asia-pacific-economies\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Effect of Institutional Quality on Economic Growth: Evidence from 14 Asia-Pacific Economies | Jurnal Ekonomi Malaysia\" \/>\n<meta property=\"og:description\" content=\"This paper examines the impact of institutional quality on the economic growth of 14 Asia-Pacific economies using the Theory of Institutional Embeddedness. A multilayer statistical model was developed, incorporating economic and institutional layers with variables such as physical capital, labor force, political institution quality, legal institution quality, and economic institutionContinue Reading\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ukm.my\/jem\/article\/the-effect-of-institutional-quality-on-economic-growth-evidence-from-14-asia-pacific-economies\/\" \/>\n<meta property=\"og:site_name\" content=\"Jurnal Ekonomi Malaysia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Jurnal-Ekonomi-Malaysia-JEM-104142808087485\" \/>\n<meta property=\"article:modified_time\" content=\"2026-04-30T06:57:51+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@EkonomiJurnal\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" 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