Institution, Financial Sector, and Economic Growth: Use The Institutions As An Instrument Variable
Institution has been investigated having indirect role on economic growth. This paper aims to evaluate whether the quality of institution matters for economic growth. By applying institution as instrumental variable at Foreign Direct Investment (FDI), quality of institution significantly influence e...
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| Format: | Article |
| Language: | English |
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Muhammadiyah University Press
2016-06-01
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| Series: | Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan |
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| Online Access: | http://journals.ums.ac.id/index.php/JEP/article/view/1555 |
| _version_ | 1829112707242000384 |
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| author | Albertus Girik Allo |
| author_facet | Albertus Girik Allo |
| author_sort | Albertus Girik Allo |
| collection | DOAJ |
| description | Institution has been investigated having indirect role on economic growth. This paper aims to evaluate whether the quality of institution matters for economic growth. By applying institution as instrumental variable at Foreign Direct Investment (FDI), quality of institution significantly influence economic growth. This study applies two set of data period, namely 1985-2013 and 2000-2013, available online in the World Bank (WB). The first data set, 1985-2013 is used to estimate the role of financial sector on economic growth, focuses on 67 countries. The second data set, 2000-2013 determine the role of institution on financial sector and economic growth by applying 2SLS estimation method. We define institutional variables as set of indicators: Control of Corruption, Political Stability and Absence of Violence, and Voice and Accountability provide declining impact of FDI to economic growth. |
| first_indexed | 2024-12-12T15:22:03Z |
| format | Article |
| id | doaj.art-3e4ecec6bf3f44a98beeb9f88a64460f |
| institution | Directory Open Access Journal |
| issn | 1411-6081 2460-9331 |
| language | English |
| last_indexed | 2024-12-12T15:22:03Z |
| publishDate | 2016-06-01 |
| publisher | Muhammadiyah University Press |
| record_format | Article |
| series | Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan |
| spelling | doaj.art-3e4ecec6bf3f44a98beeb9f88a64460f2022-12-22T00:20:21ZengMuhammadiyah University PressJurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan1411-60812460-93312016-06-0117184991660Institution, Financial Sector, and Economic Growth: Use The Institutions As An Instrument VariableAlbertus Girik Allo0Universitas Negeri PapuaInstitution has been investigated having indirect role on economic growth. This paper aims to evaluate whether the quality of institution matters for economic growth. By applying institution as instrumental variable at Foreign Direct Investment (FDI), quality of institution significantly influence economic growth. This study applies two set of data period, namely 1985-2013 and 2000-2013, available online in the World Bank (WB). The first data set, 1985-2013 is used to estimate the role of financial sector on economic growth, focuses on 67 countries. The second data set, 2000-2013 determine the role of institution on financial sector and economic growth by applying 2SLS estimation method. We define institutional variables as set of indicators: Control of Corruption, Political Stability and Absence of Violence, and Voice and Accountability provide declining impact of FDI to economic growth.http://journals.ums.ac.id/index.php/JEP/article/view/1555institution, financial sector, growth, instrument variable, FDI |
| spellingShingle | Albertus Girik Allo Institution, Financial Sector, and Economic Growth: Use The Institutions As An Instrument Variable Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan institution, financial sector, growth, instrument variable, FDI |
| title | Institution, Financial Sector, and Economic Growth: Use The Institutions As An Instrument Variable |
| title_full | Institution, Financial Sector, and Economic Growth: Use The Institutions As An Instrument Variable |
| title_fullStr | Institution, Financial Sector, and Economic Growth: Use The Institutions As An Instrument Variable |
| title_full_unstemmed | Institution, Financial Sector, and Economic Growth: Use The Institutions As An Instrument Variable |
| title_short | Institution, Financial Sector, and Economic Growth: Use The Institutions As An Instrument Variable |
| title_sort | institution financial sector and economic growth use the institutions as an instrument variable |
| topic | institution, financial sector, growth, instrument variable, FDI |
| url | http://journals.ums.ac.id/index.php/JEP/article/view/1555 |
| work_keys_str_mv | AT albertusgirikallo institutionfinancialsectorandeconomicgrowthusetheinstitutionsasaninstrumentvariable |