Institutional Quality’s Impact on Moroccan Economic Growth: Insights from ARDL Modeling Approach

Abstract

This study explores the correlation between economic growth and institutional quality, employing the Autoregressive Distributed Lag model. The primary objective is to investigate the relationship between these variables in both the short and long term. Our research outcomes indicate a positive impact of institutional quality on economic growth, which endures over an extended period. In the short term, a mere one-point enhancement in institutional quality is associated with a significant five-point surge in economic growth $(P - value =0.00\lt 5\%)$. Over the long term, a single-point increase in institutional quality is linked to a substantial nine-point acceleration in economic growth.