Impact of the Institutional Quality on Economic Growth in Libya

Abstract

In this study, the researchers focused on investigating the effect of institutional quality on the economic growth of Libya. This paper used the auto-regressive distributed lag (ARDL) method to determine time series data in the period from 1981 to 2019. The results showed that institutional quality positively affected economic growth in Libya. In addition, an adverse relationship an institutional quality has with economic growth above certain of level institutional quality exceeded.

Hence, the implication of this finding is that Libya requires high level of institutional quality for ensuring long-term economic growth