Institutional Quality in Rentier States

This chapter employs panel data of 51 rentier states from 2003 to 2020 and investigates the institutional quality and economic growth of the selected sample. The parameters of institutional quality like voice and accountability, political instability, and efficiency of government could make an impact on the economic growth of the rentier states. Besides, results derived from this chapter prove that weak political institutions and rentier mentality negatively affect the economic integrity of the population. Moreover, government consumption also affects GDP growth, but powerful institutions and advanced governance strategies boost economic development. The chapter shows the importance of weakening of the authority power to improve institutional performance and advance economic growth.