Institutions and Economies <div align="justify"> <p>Institutions and Economies is a peer reviewed journal published by the Faculty of Business and Economics (formerly Faculty of Economics and Administration), University of Malaya. The journal is published four times a year, in January, April, July and October. The journal publishes research articles <strong>(excluding systematic literature review)</strong> and book reviews. Only original research articles that are not under consideration by other publishers are welcome. Special issues are also welcome but interested special issue editors must submit a proposal to the Editor-In-Chief for consideration. The journal is indexed in SCOPUS, IDEAS, MYCite, ECONPapers, ASEAN Citation Index (ACI), EBSCO and Asian Digital Library. Institutions and Economies is a recipient of the CREAM Award 2016 by the Ministry of Higher Education Malaysia.</p> <p>Print ISSN: 2232 - 1640<br />E - ISSN: 2232 - 1349 </p> <p> </p> <p><strong>Peer Review Statement </strong></p> <p><strong><em>All research articles in the journal have undergone rigorous peer review. The process consists of an initial screening by the</em> <em>Editor-In-Chief, Deputy Editor and</em><em> Associate Editors, followed by double-blind refereeing: two reviewers for articles. Articles in special issues go through double-blind refereeing and one internal review by the Editorial Board. </em></strong></p> <p><strong><br />IMPORTANT ANNOUNCEMENT</strong></p> <p>There will be a <strong>publication fee of USD100/- for accepted papers only (papers that have undergone the double-blind review process)</strong> to partially cover the expenses of copy editing of accepted manuscripts. <strong>Payment of the publication fee should only be made after acceptance of a manuscript.</strong> </p> <p><strong>Note: Submissions from 1/1/2024 and that have been accepted for publication after the double-blind review process will be subject to a publication fee of RM500/-.</strong></p> <p>The detailed information of the payment process can be seen <a href="">here</a>. Payment of the publication fee can be done at this <a href="">website</a>.</p> <p> </p> </div> <div class="SnapLinksContainer" style="margin-left: 0px; margin-top: 0px; display: none;"> <div class="SL_SelectionRect"> <div class="SL_SelectionLabel" style="right: 2px; bottom: 2px;">0 Links</div> </div> <!-- Used for easily cloning the properly namespaced rect --></div> <div class="SnapLinksContainer" style="margin-left: 0px; margin-top: 0px; display: none;"> <div class="SL_SelectionRect"> </div> <!-- Used for easily cloning the properly namespaced rect --></div> University of Malaya en-US Institutions and Economies 2232-1640 <p>Submission of a manuscript implies: that the work described is original, has not been published before (except in the form of an abstract or as part of a published lecture, review, or thesis); that is not under consideration for publication elsewhere; that its publication has been approved by all co-authors, if any, as well as tacitly or explicitly by the responsible authorities at the institution where the work was carried out. Transfer of copyright to the University of Malaya becomes effective if and when the article is accepted for publication. The copyright covers the exclusive right to reproduce and distribute the article, including reprints, translations, photographic reproductions, microform, electronic form (offline and online) or other reproductions of similar nature.<br />An author may self-archive the English language version of his/her article on his/her own website and his/her institutions repository; however he/she may not use the publishers PDF version which is posted on Furthermore, the author may only post his/her version, provided acknowledgement is given to the original source of publication and a link must be accompanied by the following text: The original publication is available at</p> <p>All articles published in this journal are protected by copyright, which covers the exclusive rights to reproduce and redistribute the article (e.g. as offprint), as well as all translation rights. No material published in this journal may be reproduced photographically or stored on microfilm, in electronic database, video disks, etc., without first obtaining written permission from the publishers. The use of general descriptive names, trade names, trademarks, etc., in this publication, even if not specifically identified, does not imply that these names are not protected by the relevant laws and regulations.</p> <p>The copyright owners consent does not include copying for general distribution, promotion, new works, or resale. In these cases, specific written permission must first be obtained from the publishers.</p> Governance and Economic Growth: The Mediating Role of FDI Inflows <p>Abstract: Many studies have attempted to examine the effect of governance on<br>economic growth. However, these studies reveal heterogeneities that make it difficult to<br>implement policy. This current study attempts to fill these gaps by employing foreign<br>direct investment (FDI) inflows as a mediating variable. This study employs balanced<br>panel data for the 10 Association of Southeast Asian Nations (ASEAN) between the<br>period of 2000 to 2021. Based on the mediation framework in a random effect model,<br>this study reveals that political stability (PV) and government effectiveness (GE) affect<br>FDI positively. Moreover, this study finds that FDI can mediate the indirect effect of<br>PV and GE on economic growth. However, this study also reveals that the direct effect<br>of GE on economic growth is negative. This implies that ASEAN countries should be<br>practical, effective, and systematic in improving GE to minimise opportunity costs. On<br>the other hand, ASEAN countries should focus on maintaining PV to attract more FDI<br>and encourage economic growth.</p> Dani Rahman Hakim Saksono Budi Copyright (c) 2024 2024-07-01 2024-07-01 1 25 10.22452/IJIE.vol16no3.1 Zakat and Socio-Economic Impact: The Role of Local Government and Zakat Institutions <p>Abstract: This study aims to solve research questions on whether support for zakat<br>institutions (ZIs) from regional governments in the East Java province of Indonesia<br>affects the social and economic conditions of the region. The authors observed 11 samples<br>of cities and districts in East Java over the last three years (2019 to 2021). Thirty-three<br>research data were processed using panel data regression techniques with a fixed-effects<br>model approach. Data was obtained from the National Zakat Institution (Baznas). The<br>results show that financial support from the local government budget (RREB) and<br>through zakat regulations of the regional governments in East Java have a positive<br>effect on GRDP and a significant negative effect on the Gini index. In addition, zakat<br>distribution activities in East Java have also been shown to have a significant positive<br>and negative effect on GRDP growth and the Gini index. This study also provides<br>recommendations to the local government of East Java and zakat stakeholders in<br>synergising to build a better regional ZI system to support the regional economy.</p> Umar Al-Haddad Agung Maulana Rifaldi Majid Muh. Fudhail Rahman Copyright (c) 2024 2024-07-01 2024-07-01 27 50 10.22452/IJIE.vol16no3.2 Access Barriers for Marine Products Exporters in Andhra Pradesh <p>Abstract: The current study examines the barriers faced by marine product exporters<br>in Andhra Pradesh, India. These are categorised into infrastructural, operational,<br>human resource, financial, raw material, general, and exporting process barriers. The<br>present study is descriptive in nature, and surveys 115 marine exporters from Andhra<br>Pradesh. Cronbach’s alpha and factor analysis are used to assess the reliability of the<br>questionnaires and indicate a good reliability score between the variables. Following that,<br>we used a single-factor Analysis of Variance (ANOVA) test to determine the significance<br>of the variables. Finally, the findings show that infrastructural, general, and exporting<br>process barriers have a positive significant relationship with export performance, whereas<br>human resource, financial, raw material and operational barriers have a negative<br>significant relationship. This study can be beneficial to state and central governments<br>by increasing foreign reserves and tax revenue, increasing employment opportunities,<br>expanding the global market, properly utilising natural resources, and improving banks’<br>financial schemes.</p> K. Vijaya Sekhar T. Durga Prasad A. Irin Sutha G. Jitendra N. Visalakshi Copyright (c) 2024 2024-07-01 2024-07-01 51 69 10.22452/IJIE.vol16no3.3 Impact of Global Value Chains on the Performance of Moroccan Exports: Sector Analysis with Economic Dependencies <p>Abstract: The last few decades have been marked by profound changes in international<br>trade, which is increasingly organised around global value chains. Theoretical and<br>empirical research shows the benefits associated with increasing participation in global<br>value chains (GVCs) for both developed and developing countries. However, empirical<br>studies on the effects of backward and forward participation in GVCs for the specific case<br>of a country remain limited. This article seeks to examine whether Morocco’s backward<br>and forward participation in GVCs improves the performance of its exports over the<br>period of 1995 to 2018 using different cointegration techniques in panel data. Our<br>empirical results show that forward and backward participation positively impact exports<br>and domestic value added in Moroccan exports. They also indicate that domestic and<br>foreign service inputs contribute positively to this performance. Based on the obtained<br>results, we propose some recommendations for policymakers.</p> Abdelkarim Jabri Jaafari Islam Zenansi Mourad Copyright (c) 2024 2024-07-01 2024-07-01 71 96 10.22452/IJIE.vol16no3.4 Economic Crisis Treatment Based on Artificial Intelligence <p>Abstract: There are many possible causes of an economic crisis—a financial downturn,<br>a banking meltdown, political strife (e.g., the Russia-Ukraine war), or a health-related<br>catastrophe (e.g., Covid-19). Some of these crises are expected, while others are “bolts<br>from the sky.” However, what is certain is that all these crises, whatever their cause,<br>have a negative impact on global gross domestic product (GDP). If we can identify the<br>components of output that have the most impact in an economic crisis, we might be able<br>to mitigate its effects. Therefore, this paper uses machine learning algorithms to determine<br>how the components of expenditure and sectoral value-added approach impact global<br>GDP. The gradient boosting algorithm is the most accurate model for predicting and<br>determining the impact of independent variables on a dependent variable. The results<br>indicate that government spending has the largest effect on global GDP, accounting for<br>68.3% of the impact. The economic sector with the most impact on global GDP is the<br>service sector, which affects global output by 42.3%, followed by the agricultural sector<br>at 30.2%. Thus, stimulating government spending and the service sector may reduce the<br>negative effects of an economic crisis.</p> Mohamed F. Abd El-Aal Copyright (c) 2024 2024-07-01 2024-07-01 97 116 10.22452/IJIE.vol16no3.5