Institutional Quality, Governance and Economic Growth: Evidence from Former Soviet Countries

This paper focuses on the relationships between Institutional Quality, Governance and economic growth. We used World Bank data for five former Soviet Union countries and Worldwide governance index (WGI) data on institutional quality and governance, for the period 1996-2015 and applied Fully Modified Ordinary Least Squares method to investigate the impact of institutional and governance development on economic growth. We found a positive and significant effect of change of Institutional and Governance on economic growth in all the countries. The same is true for the aggregate indicator of institutional quality as well as for individual institutional quality indicators except for Voice and accountability and political stability.