A panel cointegration study of the effects of institutional factors on economic growth: Evidence from developing countries

This paper examines the impact of institutional factors, human capital, physical capital and the total energy consumption on the economic growth of the selected countries of developing world. To achieve this purpose we used a combined indicator of institutional factors, including the variables of the right to protest and response, non-violent political stability, government effectiveness, regulatory quality, rule of law and control of corruption, and examined nine selected developing countries during the period 2002-2011. To estimate the effects of variables, the econometric technique of panel co-integration with the approach of fully modified ordinary least squares (FMOLS) is used, and the results suggest that a combination of institutional factors has a significant negative impact on economic growth, However, variables related to the indexes of physical capital, human capital and total energy consumption has a positive and significant impact on economic growth

کلیدواژه ها:

institutional factors ، economic growth ، panel cointegration techniques