The relationship between development, investments, insecurity and social conditions in Colombia: a dynamic approach

Alexander Cotte Poveda

No 10463, Serie de Documentos en Economía y Violencia from Centro de Investigaciones en Violencia, Instituciones y Desarrollo Económico (VIDE)

Abstract: In this paper, we investigate the relationship between economic development, investments, savings, insecurity and social conditions in Colombian departments. Using a dynamic heterogeneous panel analysis, we study the effects of insecurity and social conditions on economic development through an estimation of panel data cointegration techniques. The models applied in this study suggest a long-term relationship among economic development, investments, savings, social conditions and insecurity. Investments, savings and human development index have a positive and significant coefficient, which indicates that these variables produce incentives for economic development, whereas GINI and homicides have a negative relationship, demonstrating that these variables undermine economic development. All findings are important in the design of strategies and policies that strengthen income distribution equality, a key factor that determines growth and development through adequate government expenditures that encourage savings and investment decisions with the aim to improve welfare and the standard of living.

Keywords: Social; conditions; ·; Economic; development; ·; Dynamic; of; the; long; run; ·; Saving; ·; Investments (search for similar items in EconPapers)
JEL-codes: B50 C23 E20 I30 O10 (search for similar items in EconPapers)
Pages: 15
Date: 2013-02-07
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http://link.springer.com/article/10.1007%2Fs11135-012-9687-2

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Journal Article: The relationship between development, investments, insecurity and social conditions in Colombia: a dynamic approach (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:col:000137:010463

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