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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:机构质量被认为是提高一个国家经济增长的重要因素。本文探讨了体制质量在经济增长中的作用,更具体地,它通过外国直接投资渠道扮演的作用。本文采用104个国家的更大数据集,将GMM估计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,通过提高外商直接投资诱导的经济增长,对经济增长的机构质量间接影响。本文提供了证据表明,外商直接投资流入和机构质量均导致经济增长更强。然而,外国直接投资的增长仅在低收入和中等收入国家都经历过。在这些国家,还发现更好的制度素质是提高外国直接投资的经济增长。本文的一个重要发现是,在高收入国家,发现外国直接投资减缓了经济增长。结果对于个体的机构质量指标和控制内能性,效果是强大的,一致。

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