Structural determinants of economic quality development and its effect on per capita output: a comparative analysis between Nordic countries and Union of South American Nations Members
Year: 2026
Type: article
Abstract: Structural gaps in economic quality persist between advanced and developing regions. This suggests that macroeconomic stability is necessary but not sufficient for sustained and inclusive growth. Endogenous growth theory highlights the roles of human capital, innovation, and institutions. However, there is limited comparative evidence that uses a unified framework across different country groups. This study examines how the structural dimensions of Economic Quality are associated with GDP per capita in Nordic countries and UNASUR member states over the period 2007–2023. Using panel data from 16 countries, the analysis estimates a static model using Ordinary Least Squares with Panel-Corrected Standard Errors (PCSE), incorporating five dimensions: fiscal sustainability, macroeconomic stability, economic dynamism, productivity and competitiveness, and labor force engagement. The results reveal significant cross-regional differences. In UNASUR countries, GDP per capita is primarily associated with macroeconomic stability and productivity-related dimensions, whereas fiscal sustainability shows no statistically significant relationship. In contrast, Nordic economies exhibit stronger associations between income performance, fiscal sustainability, and economic dynamism within a context of robust institutions and innovation systems. The findings show that the link between Economic Quality and income depends on structural and institutional conditions. Using a consistent framework, the study provides comparative evidence on the effects of economic quality on prosperity. It also shows why policy must fit each context.
Source: Frontiers in Political Science
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $1,418
OpenAlex ID: W7164580663