Effect of Institutional Quality on Economic Development in Angola

Umaru Musa; Oluwaseun Adeniran Sunday; Shuaibu Umar Sani; Aliyu Rilwan saad

doi:10.56201/ijefm.v10.no9.2025.pg33.44

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Effect of Institutional Quality on Economic Development in Angola

Umaru Musa, Oluwaseun Adeniran Sunday, Shuaibu Umar Sani, Aliyu Rilwan saad,

Abstract

In this paper, we use the ARDL method to find the effect of institution quality on economic development in Angola, range from 1991 to 2023. The ARDL technique frees variables from residual correlation as all variables are assumed to be endogenous. Before that, unit root was carried out to determine the level of stationary. They distinguish between dependent and explanatory variables in any long-run relationship. Also, the result further revealed that a unit increase in financial institution will lead to decreased in employment as a proxy for economic development, all other things been equal. Financial institution was found to be negative effect on employment as a proxy for economic development in the long run but not in the short run. From the result estimated, all the explanatory variable were consistent with a prior expectation. This implies that a unit increase in Foreign Direct Investment (FDI) and Inflation (INFL) respectively lead to be 1.21 and 3.23 decrease in an employment ceteris paribus. And also, a unit increase in financial institution (FINS), lead to be 0.0034 increased in an employment vice – versa.

References

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Effect of Institutional Quality on Economic Development in Angola

Abstract

References

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