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Democracy, Investment and Economic Growth

Author

Listed:
  • Hadhek Zouhaier

    (Superior Institut of Gestion (ISG) of Gabès- Tunisia)

  • Kefi Mohamed Karim

    (ISTEC Business School, Paris, France.)

Abstract

The main purpose of this paper is to identify the relationship between democracy, investment and economic growth for a sample of 11 countries from the MENA region during the period 2000-2009, by using a dynamic panel data model. The democracy’ effect on the contribution of investment to economic growth has been the subject of a second empirical study within the framework of this research paper. The main outcomes drawn by these two empirical tests prove that there is a significant link between on the one hand the democracy and investment and on the other hand between civil liberties and economic growth. The outcomes also highlight a positive interaction between political rights and investment.

Suggested Citation

  • Hadhek Zouhaier & Kefi Mohamed Karim, 2012. "Democracy, Investment and Economic Growth," International Journal of Economics and Financial Issues, Econjournals, vol. 2(3), pages 233-240.
  • Handle: RePEc:eco:journ1:2012-03-1
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    References listed on IDEAS

    as
    1. Guillaumont, Patrick & Jeanneney, Sylviane Guillaumont & Brun, Jean-Francois, 1999. "How Instability Lowers African Growth," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 8(1), pages 87-107, March.
    2. Helliwell, John F., 1994. "Empirical Linkages Between Democracy and Economic Growth," British Journal of Political Science, Cambridge University Press, vol. 24(02), pages 225-248, April.
    3. Alfaro, Laura & Chanda, Areendam & Kalemli-Ozcan, Sebnem & Sayek, Selin, 2004. "FDI and economic growth: the role of local financial markets," Journal of International Economics, Elsevier, vol. 64(1), pages 89-112, October.
    4. Jean-Claude Berthélemy & Jean-Paul Azam & Stéphane Calipel & Claude Jessua, 1996. "Risque politique et croissance en Afrique," Revue Économique, Programme National Persée, vol. 47(3), pages 819-829.
    5. Tavares, Jose & Wacziarg, Romain, 2001. "How democracy affects growth," European Economic Review, Elsevier, vol. 45(8), pages 1341-1378, August.
    6. Isham, Jonathan & Kaufmann, Daniel & Pritchett, Lant H, 1997. "Civil Liberties, Democracy, and the Performance of Government Projects," World Bank Economic Review, World Bank Group, vol. 11(2), pages 219-242, May.
    7. de Haan, Jakob & Siermann, Clemens L J, 1998. "Further Evidence on the Relationship between Economic Freedom and Economic Growth," Public Choice, Springer, vol. 95(3-4), pages 363-380, June.
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    Citations

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    Cited by:

    1. Dambala Gelo & Steven F. Koch & Edwin Muchapondwah, 2013. "Do the Poor Benefit from Devolution Policies? Evidences from Quantile Treatment Effect Evaluation of Joint Forest Management," Working Papers 201388, University of Pretoria, Department of Economics.
    2. Alex Coad & Julian Frankish & Paul Nightingale & Richard Roberts, 2014. "Business experience and start-up size: Buying more lottery tickets next time around?," Small Business Economics, Springer, vol. 43(3), pages 529-547, October.
    3. repec:eee:jocaae:v:10:y:2014:i:3:p:277-295 is not listed on IDEAS
    4. repec:pid:journl:v:55:y:2016:i:4:p:437-453 is not listed on IDEAS
    5. Wang, Lijian & Béland, Daniel & Zhang, Sifeng, 2014. "Pension financing in China: Is there a looming crisis?," China Economic Review, Elsevier, vol. 30(C), pages 143-154.
    6. repec:zbw:ifweej:201827 is not listed on IDEAS
    7. Richardson, Martin & Stähler, Frank, 2016. "On the “uniform pricing puzzle” in recorded music," Information Economics and Policy, Elsevier, vol. 34(C), pages 58-66.
    8. Aghion, Philippe & Akcigit, Ufuk & Howitt, Peter, 2014. "What Do We Learn From Schumpeterian Growth Theory?," Handbook of Economic Growth,in: Handbook of Economic Growth, edition 1, volume 2, chapter 0, pages 515-563 Elsevier.
    9. Robert Ruminski, 2015. "Recent Developments of Entrepreneurship in Poland: The Country Entrepreneurial Profile," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 23(02), pages 237-269, June.
    10. repec:pdc:jrnbeh:v:14:y:2018:i:2:p:217-228 is not listed on IDEAS
    11. repec:gam:jecomi:v:6:y:2018:i:1:p:5-:d:128031 is not listed on IDEAS
    12. Fjaertoft, Daniel & Lunden, Lars Petter, 2015. "Russian petroleum tax policy – Continuous maneuvering in rocky waters," Energy Policy, Elsevier, vol. 87(C), pages 553-561.
    13. Balamatsias, Pavlos, 2018. "Democracy and taxation," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 12, pages 1-28.

    More about this item

    Keywords

    Political rights; Civil liberties; Investment; Economic growth; Dynamic panel;

    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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