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
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Englisch
- Erschienen in
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Series: Economics Discussion Papers ; No. 2018-17
- Klassifikation
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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
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Veröffentlichung
- (wer)
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Kiel Institute for the World Economy (IfW)
- (wo)
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Kiel
- (wann)
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2018
- Handle
- Letzte Aktualisierung
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10.03.2025, 11:44 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Bougharriou, Nouha
- Benayed, Walid
- Gabsi, Foued Badr
- Kiel Institute for the World Economy (IfW)
Entstanden
- 2018