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Factores socio-político y judiciales como determinantes de la inversión privada en Latinoamérica
[Social-Political and Judicial Factors as Determinants of Private Investment in Latin America]

Author

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  • Acevedo Rueda, Rafael Alexis
  • Mora Mora, José U.

Abstract

This paper studies the relationship between social-political and judicial factors and private investment in Latin America during 1995-2003 by means of panel data analysis. The empirical evidence suggests that investment rate differentials, not only among Latin American countries but also with developed countries might have been caused by these factors. Countries with a neutral and strong judicial system might see their investment rates increase by as much as 2.29 percentage points. Regarding the social-political factor, it is worth to emphasize that significant improvement in political institutions, control on corruption, and better access to political and civil rights could cause the investment rate to increase by 1.84 percentage points. At last, if Latin American countries want to attract new investments, increase their economic growth possibilities, and improve their population standard of living, their governments must start working on the strengthening and creation of political institutions that permit to abolish or at least diminish corruption levels, civil rights repression, the loss of political rights, and on enhancing the judicial system.

Suggested Citation

  • Acevedo Rueda, Rafael Alexis & Mora Mora, José U., 2008. "Factores socio-político y judiciales como determinantes de la inversión privada en Latinoamérica [Social-Political and Judicial Factors as Determinants of Private Investment in Latin America]," MPRA Paper 58694, University Library of Munich, Germany, revised Apr 2008.
    • Handle: RePEc:pra:mprapa:58694
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    References listed on IDEAS

    as
    1. Rudiger Dornbusch & Sebastian Edwards, 1991. "The Macroeconomics of Populism in Latin America," NBER Books, National Bureau of Economic Research, Inc, number dorn91-1, February.
    2. Alberto Alesina & Dani Rodrik, 1994. "Distributive Politics and Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(2), pages 465-490.
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    5. Quan V. Le, 2004. "Political and economic determinants of private investment," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(4), pages 589-604.
    6. Mr. Paolo Mauro, 1996. "The Effects of Corruption on Growth, Investment, and Government Expenditure," IMF Working Papers 1996/098, International Monetary Fund.
    7. repec:bla:obuest:v:61:y:1999:i:0:p:653-70 is not listed on IDEAS
    8. Bernanke, Ben S, 1983. "The Determinants of Investment: Another Look," American Economic Review, American Economic Association, vol. 73(2), pages 71-75, May.
    9. Peter Pedroni, 1999. "Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(S1), pages 653-670, November.
    10. Rudiger Dornbusch & Sebastian Edwards, 1991. "Introduction to "The Macroeconomics of Populism in Latin America"," NBER Chapters, in: The Macroeconomics of Populism in Latin America, pages 1-4, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Beteta, Hugo E. & Moreno Brid, Juan Carlos, 2014. "Structural change and growth in Central America and the Dominican Republic: an overview of two decades, 1990-2011," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 37342 edited by Eclac, September.
    2. Acevedo Rueda, Rafael Alexis & Sanchez, Yasmin, 2013. "El consumo, ingreso y ahorro del Venezolano: un primer análisis descriptivo de la V República [Venezuelan's consumption, incomes and savning: a first descriptive analysis of the V Republic]," MPRA Paper 58211, University Library of Munich, Germany, revised 2014.
    3. Acevedo Rueda, Rafael Alexis & Mora Mora, José U. & Harmath Fernández, Pedro alexander, 2009. "Ahorro y comercio internacional como determinantes de la inversión en Latinoamérica durante el siglo XX [Saving and opennes as determinants of investment in Latin America during the twentieth centu," MPRA Paper 58692, University Library of Munich, Germany, revised 2010.

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    More about this item

    Keywords

    private investment; institutions; political stability; Latin American economies; panel data.;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • N46 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Latin America; Caribbean
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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