Innovation and institutions: a symbiotic marriage?
(2018) NEKN01 20172Department of Economics
- Abstract
- This paper studies the long-term relationship between economic growth and institutional change. Using a dynamic panel data model, several tests are conducted to test for both long- and short-term movements in GDP, and institutional quality using annual data from 87 countries ranging from 1984 to 2016. This paper contributes with an econometric approach to long-term GDP change theory as several tests are conducted for both general long-term effects of institutional reform on GDP growth, geography-specific effects and an interaction test of productivity’s and institutional reforms’ combined effect on economic activity. This paper finds that both improved political- and economic institutional quality raise long-term innovation-driven growth.... (More)
- This paper studies the long-term relationship between economic growth and institutional change. Using a dynamic panel data model, several tests are conducted to test for both long- and short-term movements in GDP, and institutional quality using annual data from 87 countries ranging from 1984 to 2016. This paper contributes with an econometric approach to long-term GDP change theory as several tests are conducted for both general long-term effects of institutional reform on GDP growth, geography-specific effects and an interaction test of productivity’s and institutional reforms’ combined effect on economic activity. This paper finds that both improved political- and economic institutional quality raise long-term innovation-driven growth. The causal relationship is found to be in the direction from institutional reform to economic growth. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8935936
- author
- Olsson, Björn LU
- supervisor
- organization
- course
- NEKN01 20172
- year
- 2018
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- GDP, TFP, dynamic panel data, institutions, political reform
- language
- English
- id
- 8935936
- date added to LUP
- 2018-02-19 10:26:55
- date last changed
- 2018-02-19 10:26:55
@misc{8935936, abstract = {{This paper studies the long-term relationship between economic growth and institutional change. Using a dynamic panel data model, several tests are conducted to test for both long- and short-term movements in GDP, and institutional quality using annual data from 87 countries ranging from 1984 to 2016. This paper contributes with an econometric approach to long-term GDP change theory as several tests are conducted for both general long-term effects of institutional reform on GDP growth, geography-specific effects and an interaction test of productivity’s and institutional reforms’ combined effect on economic activity. This paper finds that both improved political- and economic institutional quality raise long-term innovation-driven growth. The causal relationship is found to be in the direction from institutional reform to economic growth.}}, author = {{Olsson, Björn}}, language = {{eng}}, note = {{Student Paper}}, title = {{Innovation and institutions: a symbiotic marriage?}}, year = {{2018}}, }