Abstract:
Currently the role of institutional quality in economic growth is the major discussion point
in the international development arena and literature. The study aimed to investigate the
role of institutional quality on long run economic growth in fourteen selected East African
countries for the period 2013-2023; the study emphasizes investigating the institutional
quality role within certain time periods. The study estimated the dynamic panel data model
by one-step difference GMM using the data from the World Bank's World Development
Indicator and World Governance Indicator. The paper has found positive significant
impacts of institutional quality on long-run per capita growth in selected countries. The six
components of the institutional quality measure of the World Governance indicator also
have a positive significant effect on influencing long-run growth. In addition, the study found
that the working-age population significantly influences long-run growth. Thus, improving
institutional quality can be the better comparative advantage for the least developed
countries selected in this study. Institutional quality Per capita income growth GMM.
These findings suggest that policymakers should prioritize enhancing governance and
institutional frameworks to foster sustainable economic growth. By doing so, least developed
countries can create a more favourable environment for investment and development,
ultimately leading to improved living standards and economic resilience. Additionally,
strengthening these institutions can help attract foreign direct investment, which is crucial
for technology transfer and skill development. As a result, a more robust institutional
framework not only supports immediate economic gains but also lays the groundwork for
long-term stability and prosperity
