The current study investigates the relationship between institutional quality and economic growth, focusing on South-Asian countries entailing Bangladesh, Bhutan, India, Nepal, Pakistan, and Sri Lanka, from 2002 to 2018. The data are analysed using the dynamic heterogeneous panel (panel autoregressive distributed lag [ARDL] model) approach, specifically the dynamic fixed effect (DFE), mean group (MG), and pooled mean group (PMG). Based on the findings, the three governance indicators, namely corruption control, accountability, and the rule of law, positively and significantly affect economic growth. All the nations have consistent long-run estimates but varied short-run estimates and adjustment speed for the long-term equilibrium. This is due to governance volatility that is evident in all the nations. This article offers both practical and theoretical contributions. This article contributes to the institutional quality and economic growth literature from a theoretical perspective from the South-Asian perspective. From a practical perspective, the study findings are significant for policymakers, particularly those from the countries that demonstrate major fiscal and external imbalance due to war and terrorism, low oil prices and weak trade. Hence, there is a pressing need to address economic growth issues instigated by the policymakers' negligence to ensure appropriate governance and macroeconomic management. Regulators can improve economic growth through national and regional image building by developing a stable economic and political landscape and maintaining macroeconomic stability by improving the institutional quality indicators. There is evidence that institutional quality improvement leads to better economic growth.

中文翻译：

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制度质量与经济增长：来自南亚国家的证据

目前的研究调查了制度质量与经济增长之间的关系，重点关注 2002 年至 2018 年包括孟加拉国、不丹、印度、尼泊尔、巴基斯坦和斯里兰卡在内的南亚国家。使用动态异质面板（面板）分析数据自回归分布滞后 [ARDL] 模型）方法，特别是动态固定效应 (DFE)、均值组 (MG) 和合并均值组 (PMG)。根据调查结果，三个治理指标，即腐败控制、问责制和法治，对经济增长产生积极和显着的影响。所有国家都有一致的长期估计，但短期估计和长期均衡的调整速度各不相同。这是由于所有国家都存在明显的治理波动。本文提供了实践和理论贡献。本文从南亚视角的理论角度为制度质量和经济增长文献做出贡献。从实践的角度来看，研究结果对决策者具有重要意义，尤其是那些因战争和恐怖主义、低油价和贸易疲软而表现出严重财政和外部失衡的国家的决策者。因此，迫切需要解决因政策制定者的疏忽而引发的经济增长问题，以确保适当的治理和宏观经济管理。监管机构可以通过发展稳定的经济和政治格局以及通过提高制度质量指标来维持宏观经济稳定，通过国家和地区形象建设来促进经济增长。