Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Economics of fascism wikipedia , lookup
Economic democracy wikipedia , lookup
Ragnar Nurkse's balanced growth theory wikipedia , lookup
Business cycle wikipedia , lookup
Uneven and combined development wikipedia , lookup
Long Depression wikipedia , lookup
Chinese economic reform wikipedia , lookup
Economic freedom, investment and growth GRA 5917: Public Opinion and Input Politics Term Paper Proposal Alexandru Sarbu Purpose To study the impact of capital investment and economic freedom on economic growth, with focus on Sub-Saharan Africa. Theory Economic freedom leads to economic growth (Edwards; de Haan and Sturm; Tupy; Weede) Investment leads to economic growth (Dawson; Gelb, Ramachandran and Turner) Question To what extent? Kimlong Chheng Economic freedom, domestic investment rate, and FDI have a robust association with per capita GDP growth in all the 50 countries over the period. All types of capital investment interact positively and closely with economic freedom to generate growth-enhancing externalities. To attain growth, it requires investment and favorable economic freedom, fostered by government policies and institutions. Government share or public expenditure is negatively correlated with growth. The phenomenon can be expectedly predicted if the excessive expenditure goes to unproductive sectors. The initial per capita GDP in logarithms is negatively correlated with subsequent growth rate. Kimlong Chheng Growth=α0 + β1LogGDPIi + β2EFi + β3IGDPi + +β4PubEGDPi + β5DmLDCs + +β6DmDeveloping + β7(EF*IGDP) + +β8FDIGDP + εi Model Growth=α0 + β1EFi + β2IGDPi + β3DmLDCs + β4DmDeveloping+ + β5(EF*IGDP) + εi Drop LogGDP and PubEGDP Merge IGDP and FDIGDP (New dataset doesn’t differentiate) Data Alan Heston, Robert Summers and Bettina Aten, Penn World Table Version 6.3 Fraser Institute 2009 Discussion Will dropping the initial real per capita GDP in logarithms at each starting period of the fiveyear intervals and the real government expenditure to real GDP ratio alter the result? Are the dummies necessary? (Some countries have changed status)