Institutional Quality and Economic Growth in Tanzania

In this paper, we use the ARDL method to find the Impact of institutional quality on
 economic growth in Tanzania from 1990 to 2021. The ARDL technique frees variables from residual
 correlation as all variables are assumed to be endogenous. They distinguish between dependent
 and explanatory variables in any long-run relationship, identify the co-integrating vectors with
 multiple co-integrating vectors, and derive the Error Correction Model (ECM) or Error Correction
 Model (ECM) Vector Error Correction Model (VECM) by integrating short-run adjustments with
 long-run equilibrium without losing extended-run information. Our results show all adjustment
 terms in the respective models that have a long-run relationship have correct (negative) signs
 and are more than one, implying there is convergence in the long run; that is, the models
 returned to their long-run equilibrium; the rate (or speed) at which this happened ranged
 between 15% to 106.6% annually. Institutional quality has a significant affirmative (0.047)
 causal long-run effect on economic growth
