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Financial Market Efficiency, Institutions and Growth: An international Econometric Analysis for 1997-2002

Author

Listed:
  • Piñeiro, J.
  • Khan, H.A.
  • Melikyan, D.N.
  • Tamazian, A.

Abstract

The paper tests the hypothesis of a positive impact of democratization on growth, economic development and changes in well-being. We construct an empirical model to explain the impact of political institutions (democracy), economic institutions, financial market efficiency, scientific achievements and “financial or FDI” geography on growth. The empirical work based on a wide database including several indicators assessed by the authors support the hypothesis of decisive role of democratic political and efficient economic institutions in stimulating economic growth. The main results also highlight the importance of effective allocation of financial resources.

Suggested Citation

  • Piñeiro, J. & Khan, H.A. & Melikyan, D.N. & Tamazian, A., 2005. "Financial Market Efficiency, Institutions and Growth: An international Econometric Analysis for 1997-2002," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 5(2).
  • Handle: RePEc:eaa:aeinde:v:5:y:2005:i:2_2
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    References listed on IDEAS

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    1. Newey, Whitney & West, Kenneth, 2014. "A simple, positive semi-definite, heteroscedasticity and autocorrelation consistent covariance matrix," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 33(1), pages 125-132.
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    8. Minier, Jenny A, 1998. "Democracy and Growth: Alternative Approaches," Journal of Economic Growth, Springer, vol. 3(3), pages 241-266, September.
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    More about this item

    Keywords

    Capabilities; Democracy; Development; Finance; Institutions; Growth.;

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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