The Role of Institutional Quality on Total Factor Productivity

Abstract

Within the settings of the economic growth literature, this study aims at analyzing the determinants of total factor productivity in the Central and Eastern Europe (CEE) and the Middle East and North Africa (MENA) regions, with a special emphasis on institutional quality. Beside descriptive analyses, several fixed-effect panel data regressions are estimated, which enables both cross-country and cross-regional analyses. Estimation results provide strong statistical evidence of institutional influences on total factor productivity in the CEE and MENA economies.