Democracy, Investment and Economic Growth

• Main Authors: Hadhek Zouhaier, Kefi Mohamed Karim
• Format: Article
• Language: English
• Published: EconJournals 2012-09-01
• Series: International Journal of Economics and Financial Issues
• Subjects: political rights; civil liberties; investment; economic growth; dynamic panel
• Online Access: https://dergipark.org.tr/tr/pub/ijefi/issue/31954/351838?publisher=http-www-cag-edu-tr-ilhan-ozturk

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.