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What is GMM-IV PanelVAR about?

This paper examines the dynamic relationship between institutions and economic growth using a Panel SVAR model for 119 countries over 10 years. It finds that a 1% shock in institutional quality results in a peak 1.7% increase in GDP per capita after six years, with varying dynamics for advanced and developing countries. The study supports the institutions hypothesis and suggests diminishing returns to improvements in institutional quality.

Author

Husam hr

Language

EN