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Institutions, Investment And Economic Growth: A Cross-Country And Panel Data Study

Author

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  • SAMIA NASREEN

    (Department of Economics, Government College University Faisalabad, Faisalabad, Punjab (Pakistan), Pakistan)

  • SOFIA ANWAR

    (Department of Economics, Government College University Faisalabad, Faisalabad, Punjab (Pakistan), Pakistan)

  • MASOOD QADIR WAQAR

Abstract

In this study, both cross-country and panel techniques have been used to analyze the long-term impact of institutions on investment and economic growth in the context of neoclassical model. The empirical results indicate that both physical and human capital investment have positive impact on economic growth. Economic freedom has a direct impact on economic growth by enhancing factor productivity and indirect by increasing investment. Political and civil liberties also exert positive impact on investment. Further, an important relationship exists between institutional freedom and human capital investment in both cross-country and panel data analysis.

Suggested Citation

  • Samia Nasreen & Sofia Anwar & Masood Qadir Waqar, 2015. "Institutions, Investment And Economic Growth: A Cross-Country And Panel Data Study," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 60(04), pages 1-19.
    • Handle: RePEc:wsi:serxxx:v:60:y:2015:i:04:n:s0217590815500617
    DOI: 10.1142/S0217590815500617
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    References listed on IDEAS

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    1. Robert J. Barro, 1998. "Determinants of Economic Growth: A Cross-Country Empirical Study," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262522543, April.
    2. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
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    Cited by:

    1. Saima Nawaz & M. Idrees Khawaja, 2016. "Fiscal Policy, Institutions And Growth: New Insights," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(05), pages 1251-1278, December.
    2. Aurora A. C. Teixeira & N. Renuga Nagarajan & Sandra T. Silva, 2017. "The Impact of Ageing and the Speed of Ageing on the Economic Growth of Least Developed, Emerging and Developed Countries, 1990–2013," Review of Development Economics, Wiley Blackwell, vol. 21(3), pages 909-934, August.

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