Unlocking Prosperity: Fresh Insights into Economic Growth Through Financial Development, Domestic Investment, and Corruption Trends in LAC Countries

Sayef Bakari

MPRA Paper from University Library of Munich, Germany

Abstract: The aim of this study is to assess the influence of financial development, domestic investments, and corruption on economic growth, through the analysis of data from 42 Latin American and Caribbean countries spanning the period from 1998 to 2022. Utilizing estimation techniques such as the static fixed-effects gravity model, the random-effects gravity model, and the Hausman test, our findings indicate that domestic investments and financial development exert a positive influence on economic growth. However, it has been observed that corruption control has no significant impact on economic growth. It is recommended to prioritize policies aimed at stimulating domestic investments and financial development to foster economic growth, while implementing specific strategies to strengthen corruption control mechanisms and promote an integrity-focused business environment, despite its relatively limited impact on economic growth.

Keywords: Financial Development; Domestic Investment; Corruption; Economic Growth; LAC Countries. (search for similar items in EconPapers)
JEL-codes: G31 O43 O47 O54 P33 P37 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-fdg
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