Citation
Slesman, Ly and Baharumshah, Ahmad Zubaidi and Wohar, Mark E.
(2015)
Capital inflows and economic growth: does the role of institutions matter?
International Journal of Finance and Economics, 20 (3).
pp. 253-275.
ISSN 1947-2757; ESSN: 1947-2765
Abstract
Recent evidence shows that institutions figure prominently in explaining the ‘Lucas paradox’. Using a threshold regression model, we extend this evidence to a situation where institutions index the relationship between foreign capital inflows and economic growth. We find strong and robust evidence that portfolio equity (including foreign direct investment) and debt inflows have positive effects on growth only in countries with high‐quality institutions. Countries that fall below the threshold level of institutional quality record either insignificant or negative effects. This paper provides a possible explanation on the so‐called Lucas paradox.
Download File
Official URL or Download Paper: https://onlinelibrary.wiley.com/doi/full/10.1002/i...
|
![[img]](http://psasir.upm.edu.my/style/images/fileicons/text.png)
Additional Metadata
| Item Type: | Article |
|---|---|
| Divisions: | Faculty of Economics and Management |
| DOI Number: | https://doi.org/10.1002/ijfe.1514 |
| Publisher: | International Institute of Finance and Economics |
| Keywords: | Capital inflows; Institutions; Economic growth; Threshold regression |
| Depositing User: | Ms. Ainur Aqidah Hamzah |
| Date Deposited: | 14 Mar 2022 04:42 |
| Last Modified: | 14 Mar 2022 04:42 |
| Altmetrics: | http://www.altmetric.com/details.php?domain=psasir.upm.edu.my&doi=10.1002/ijfe.1514 |
| URI: | http://psasir.upm.edu.my/id/eprint/43994 |
| Statistic Details: | View Download Statistic |
Actions (login required)
 |
View Item |