The Role of Institutional Structure in the Effect of Monetary Policy on Growth: An Application on Countries at Different Income Levels

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SOSYOEKONOMI, vol.31, no.58, pp.61-80, 2023 (ESCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 31 Issue: 58
  • Publication Date: 2023
  • Doi Number: 10.17233/sosyoekonomi.2023.04.03
  • Journal Name: SOSYOEKONOMI
  • Journal Indexes: Emerging Sources Citation Index (ESCI), TR DİZİN (ULAKBİM)
  • Page Numbers: pp.61-80
  • Anadolu University Affiliated: Yes


In this study, the impact of monetary policy on growth is discussed within the institutional framework for countries with different income levels. The findings from the GMM estimator showed that the effect of contractionary monetary policy on growth is negative in all countries. On the other hand, it is concluded that the impact of all institutional indicators is positive in high and upper-middle income countries and that the increase in institutional quality reduces the adverse effects of contractionary monetary policy on growth. In terms of lower-middle-income countries, the effects of some institutional variables are found to be statistically insignificant.