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The Political Economy of Institutions, Stability and Investment: a simultaneous equation approach in an emerging economy – the case of South Africa

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  • Johannes W. Fedderke
  • John M. Luiz

Abstract

The modern theory of investment identities the importance of uncertainty to investment. A number of empirical studies have tested the theory on South African time series, employing political instability measures as proxies for uncertainty. This paper verifies that political instability measures are required in the formulation of the investment function for South Africa. It also […]

Suggested Citation

  • Johannes W. Fedderke & John M. Luiz, 2005. "The Political Economy of Institutions, Stability and Investment: a simultaneous equation approach in an emerging economy – the case of South Africa," Working Papers 015, Economic Research Southern Africa.
    • Handle: RePEc:rza:wpaper:015
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