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In this study, the relationship between institutional quality and welfare has been tried to be examined in BRICS-T countries. For this purpose, the World Bank Worldwide Governance Index was used as an indicator of institutional quality, and its effect on economic growth, which is an indicator of welfare, was examined for the period 2002-2020. It has been determined that there is cross-sectional dependence and heterogeneity in the slope coefficients in the panel. As a result of the panel cointegration test of Westerlund and Edgerton (2007), it has been concluded that there is cointegration between the variables. Panel-SUR has been preferred as the coefficient estimation method. This method yields effective results when N<T and especially when the number of units is less than 12. According to the findings, a positive relationship has been found between welfare and institutional quality, gross capital formation, and trade. In addition, there is a negative relationship between welfare and population and domestic credit to the private sector. The coefficient of inflation variable is significant for Russia and South Africa and has a negative sign. If policymakers implement radical reforms on institutional quality and follow positive policies, this will lead to an increase in the welfare of the countries concerned. Policy decision-makers should take this situation into account and implement their economic policies.
welfare, BRICS-T, Panel-SUR, Institutional quality
welfare, BRICS-T, Panel-SUR, Institutional quality
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