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Foreign direct investments, institutional quality, and economic growth

机译:外国直接投资,机构质量和经济增长

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摘要

Institutional quality is considered to be an important factor in boosting economic growth of a country. This paper explores the role of institutional quality in economic growth and more specifically the role it plays via the channel of foreign direct investments. This paper uses a larger dataset of 104 countries and applies GMM estimation method to a dynamic panel data to evaluate the direct impact of institutional quality on economic growth and the indirect impact of institutional quality on economic growth through enhancing the FDI-induced economic growth. This paper provides evidence that both FDI inflows and institutional quality cause stronger economic growth. The FDI-led growth, however, was only experienced in the low and middle-income countries. In these countries, better institutional quality was also found to be enhancing the FDI-led economic growth. An important finding of this paper is that in the high-income countries, FDI was found to slow down the economic growth. The results are robust and consistent for individual institutional quality indicators and controlling for endogeneity.
机译:制度质量被认为是促进一个国家经济增长的重要因素。本文探讨了机构质量在经济增长中的作用,更具体地说,它是通过外国直接投资渠道发挥的作用。本文使用了104个国家的较大数据集,并将GMM估算方法应用于动态面板数据,以评估机构质量对经济增长的直接影响以及机构质量对FDI的直接影响(通过增强FDI诱发的经济增长)。本文提供的证据表明,外国直接投资的流入和机构质量都可以促进更强劲的经济增长。但是,外国直接投资带动的增长仅在中低收入国家经历过。在这些国家,还发现更好的机构质量正在促进外国直接投资带动的经济增长。本文的一个重要发现是,在高收入国家中,发现外国直接投资减缓了经济增长。对于单个机构质量指标和内生性控制,结果是可靠且一致的。

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