Does investment spur growth everywhere? Not where institutions are weak
Pierre-Guillaume Méon () and
ULB Institutional Repository from ULB -- Universite Libre de Bruxelles
We investigate the impact of investment on growth in a sample of 85 developed and developing countries over 1984-2009, conditioning the marginal effect of investment on institutional quality. The panel structure of our dataset allows controlling for unobserved heterogeneity and dealing with the risk of endogeneity bias. We find that investment increases growth more in countries with high institutional quality than in countries with defective institutions. The results are robust to estimating the model separately for developed and developing countries, for each continent, and over two sub-periods. A jackknife experiment shows that they do not depend on any single country. The results are essentially driven by the quartiles of countries with the lowest and the highest institutional quality, and by the Government instability, Corruption, and Rule of law sub-components of the ICRG index.
Keywords: growth; investment; institutions (search for similar items in EconPapers)
JEL-codes: E02 O11 P48 (search for similar items in EconPapers)
Note: SCOPUS: ar.j
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15) Track citations by RSS feed
Published in: Kyklos (2014) v.67 nÂ° 4,p.482-505
Downloads: (external link)
https://dipot.ulb.ac.be/dspace/bitstream/2013/184273/3/CEBPostprint004.pdf Œuvre complète ou partie de l'œuvre (application/pdf)
Journal Article: Does Investment Spur Growth Everywhere? Not Where Institutions Are Weak (2014)
Journal Article: Does investment spur growth everywhere? Not where institutions are weak (2014)
Working Paper: Does investment spur growth everywhere? Not where institutions are weak (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ulb:ulbeco:2013/184273
Ordering information: This working paper can be ordered from
http://hdl.handle.ne ... lb.ac.be:2013/184273
Access Statistics for this paper
More papers in ULB Institutional Repository from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels ().