Arbeitspapier

The democracy and economic growth nexus: Do FDI and government spending matter? Evidence from the Arab world

The purpose of the paper is to examine the direct and indirect links between democracy and economic growth. To do so, the authors estimate a dynamic panel simultaneous equations model on a sample of 16 Arab countries during the period 2002-2013. This study focuses on two particular channels through which democracy affects growth, namely FDI inflows and public consumption expenditure. The results show that there is no clear relationship between democracy and economic growth in the Arab countries, which confirms the skeptical approach. The ambiguity of this relationship can be explained by the fact that democracy promotes growth indirectly by stimulating FDI inflows and hinders growth by generating higher public consumption expenditure.

Sprache
Englisch

Erschienen in
Series: Economics Discussion Papers ; No. 2018-17

Klassifikation
Wirtschaft
Economic Growth and Aggregate Productivity: General
Capitalist Systems: Political Economy
Thema
democracy
economic growth
FDI
government spending
Arab world
dynamic panel simultaneous equations model

Ereignis
Geistige Schöpfung
(wer)
Bougharriou, Nouha
Benayed, Walid
Gabsi, Foued Badr
Ereignis
Veröffentlichung
(wer)
Kiel Institute for the World Economy (IfW)
(wo)
Kiel
(wann)
2018

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Bougharriou, Nouha
  • Benayed, Walid
  • Gabsi, Foued Badr
  • Kiel Institute for the World Economy (IfW)

Entstanden

  • 2018

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