During the last years the effects of socio-institutional and political variables on economic conditions has gained importance in the literature. This paper investigates the links between socio-institutional variables and capital inflows and GDP relative to a sample of countries for the years 2003-2004. First of all, the causality relationships between the variables under consideration are investigated and identified by means of a particular software, called TETRAD; after that, a system of equations is estimated. The results support the hypothesis that economic freedom is crucial for both capital flows and GDP.
Mastromatteo, G., Verga, G., Institutional variables, capital flows and GDP: a causality analysis, <<STUDI ECONOMICI>>, 2007; 2007 (1): 1-32 [http://hdl.handle.net/10807/38735]
Institutional variables, capital flows and GDP: a causality analysis
Mastromatteo, Giuseppe;
2007
Abstract
During the last years the effects of socio-institutional and political variables on economic conditions has gained importance in the literature. This paper investigates the links between socio-institutional variables and capital inflows and GDP relative to a sample of countries for the years 2003-2004. First of all, the causality relationships between the variables under consideration are investigated and identified by means of a particular software, called TETRAD; after that, a system of equations is estimated. The results support the hypothesis that economic freedom is crucial for both capital flows and GDP.
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
