Institutions and Economic Growth: A Systems Approach

Chris Doucouliagos and Mehmet Ulubasoglu

No 63, Econometric Society 2004 Australasian Meetings from Econometric Society

Abstract: In a simultaneous equations with error components framework, we analyze the institutions-growth relationship. We address individual heterogeneity in cross-country production functions, and endogeneize factor inputs in order to disentangle the direct and indirect effects of institutions on growth. We find that the effects of political freedom on total factor productivity and human capital are positive and significant, but they are negative and significant on physical capital and labor force growth. Economic freedom, on the other hand, has positive and significant effects on total factor productivity, physical and human capital, and labor force growth. The total effects of both freedoms on growth are positive

Keywords: Institutions; Growth; Simultaneous Equations; Error Components (search for similar items in EconPapers)
JEL-codes: C33 O40 (search for similar items in EconPapers)
Date: 2004-08-11
New Economics Papers: this item is included in nep-dev and nep-reg
References: Add references at CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
http://repec.org/esAUSM04/up.29323.1076501864.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecm:ausm04:63

Access Statistics for this paper

More papers in Econometric Society 2004 Australasian Meetings from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F. Baum ().