Title: Convergence of the institutional quality of the social sector: the path to inclusive growth

Authors: Serhiy Lyeonov; Tetyana Vasilyeva; Yuriy Bilan; Kseniya Bagmet

Addresses: Department of Economic Cybernetics, Sumy State University, Sumy, 40007, Ukraine ' Department of Finance and Entrepreneurship, Sumy State University, Sumy, 40007, Ukraine ' Centre of Applied Economic Research, Tomas Bata University in Zlin, Zlín, 760 01, Czech Republic ' Department of International Economic Relations, Sumy State University, Sumy, 40007, Ukraine

Abstract: The paper uses concepts of the conditional and unconditional β-convergence in order to answer the question of whether there is a convergence in the institutional quality of the social sector between countries. Two groups of indicators for institutional quality of the social sector are used: the first indicator is the institutional quality index of social sector (QISS) as measure of quality of formal institutions; the second group includes indices of social development (ISD), which are used as quality indicators for development of informal social institutions. The regression results that both conditional and unconditional convergence of the institutional quality of the social sector, according to the indicator QISS has not been approved yet. It was found that there was an unconditional convergence by the social institutes Intergroup Cohesion, divergence by the institutions gender equality. Informal social institutions revealed are significantly influenced by voice and accountability, rule of law, control of corruption.

Keywords: convergence; institutional quality of the social sector; social capital; inclusive growth; β-convergence; unconditional and conditional convergence; informal social institutions.

DOI: 10.1504/IJTGM.2021.115712

International Journal of Trade and Global Markets, 2021 Vol.14 No.3, pp.272 - 291

Received: 13 May 2019
Accepted: 20 Aug 2019
Published online: 18 Jun 2021 *

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