Institutional and Structural Determinants of Investment Worldwide

This paper considers institutional and structural factors associated with investment activity in a panel of up to 129 developed and developing countries. It introduces these factors to a standard neoclassical investment function for open economies, and find that financial development and institutional quality are reasonably robust determinants of cross-country capital formation, with latter displaying more stability in the sign and significance of its coefficient. Indeed, when endogeneity concerns are addressed more explicitly using external instruments, and both interactions and subsamples are considered, institutional quality tends to survive as the causal determinant of investment.

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Bibliographic Details
Main Author: Lim, Jamus Jerome
Format: Policy Research Working Paper biblioteca
Language:English
en_US
Published: World Bank, Washington, DC 2013-09
Subjects:AFFILIATED ORGANIZATIONS, ARBITRAGE, BANK LENDING, BANKING CRISES, BANKING REGULATION, BANKING SECTOR, BANKING SYSTEMS, BENCHMARK, BOND, BUSINESS CLIMATE, BUSINESS ENVIRONMENT, BUSINESS INVESTMENT, BUSINESS REGULATION, CAPITAL ACCOUNT, CAPITAL ACCUMULATION, CAPITAL FLOWS, CAPITAL FORMATION, CAPITAL MARKET, CAPITAL MARKETS, CAPITAL STOCK, CAPITAL STRUCTURE, CAPITAL THEORY, COMMERCIAL CONTRACT, COMPARATIVE ECONOMICS, CONTRACT ENFORCEABILITY, CONTRACT ENFORCEMENT, CORPORATE DEBT, CORPORATE TAX, CORPORATE TAX RATE, COST OF CAPITAL, COUNTRY CAPITAL, COUNTRY RISK, CREDITOR, CROSS-BORDER CAPITAL, CURRENCY, CURRENCY CRISES, CURRENCY CRISIS, CURRENT ACCOUNT DEFICITS, DEBT, DEBT FINANCING, DEBTOR, DEMOCRACY, DEMOCRATIC ACCOUNTABILITY, DERIVATIVE, DEVELOPED COUNTRIES, DEVELOPING COUNTRIES, DEVELOPING ECONOMIES, DEVELOPMENT ECONOMICS, DEVELOPMENT POLICY, DOMESTIC CREDIT, DOMESTIC INTEREST RATE, DOMESTIC INVESTMENT, DOMESTIC INVESTORS, DOMESTIC SAVING, ECONOMETRIC ANALYSIS, ECONOMETRICS, ECONOMIC ACTIVITY, ECONOMIC COOPERATION, ECONOMIC DEVELOPMENT, ECONOMIC FACTORS, ECONOMIC GROWTH, ECONOMIC PERFORMANCE, ECONOMIC SIZE, ECONOMIC STRUCTURE, EMPIRICAL ANALYSIS, EMPIRICAL STUDIES, ENVIRONMENTS, EQUITY MARKETS, EXPLOITATION, EXPORTS, EXPROPRIATION, FINANCIAL CONSTRAINTS, FINANCIAL CRISES, FINANCIAL CRISIS, FINANCIAL DEVELOPMENT, FINANCIAL OPENNESS, FINANCIAL SECTOR, FINANCIAL STRUCTURE, FINANCIAL STRUCTURES, FINANCIAL SUPPORT, FINANCIAL SYSTEMS, FINANCIALLY OPEN ECONOMIES, FIXED CAPITAL, FIXED INVESTMENT, FOREIGN DIRECT INVESTMENT, FOREIGN INVESTMENT, FORMAL ANALYSIS, FUTURE RESEARCH, GDP, GDP DEFLATOR, GLOBAL CAPITAL, GLOBAL CAPITAL MARKETS, GLOBAL RISK, GROSS DOMESTIC PRODUCT, GROSS FIXED CAPITAL FORMATION, GROWTH MODELS, GROWTH RATE, INCOME, INDUSTRIAL COUNTRIES, INFLATION, INSTITUTIONAL ENVIRONMENT, INSTRUMENT, INTEREST RATE, INTERNATIONAL BANK, INTERNATIONAL CAPITAL, INTERNATIONAL CAPITAL FLOWS, INTERNATIONAL ECONOMICS, INTERNATIONAL INVESTMENT, INVENTORY, INVESTMENT ACTIVITY, INVESTMENT BEHAVIOR, INVESTMENT CLIMATE, INVESTMENT DECISIONS, INVESTMENT FINANCING, INVESTMENT FUNCTION, INVESTMENT INCENTIVES, INVESTMENT OPPORTUNITIES, INVESTMENT PATTERNS, INVESTMENT RATE, INVESTMENT RISK, INVESTMENT SPENDING, INVESTMENT TAX CREDITS, INVESTMENT THEORY, INVESTOR PROTECTION, INVESTOR PROTECTIONS, IRREVERSIBILITY, LDCS, LOANABLE FUNDS, MACROECONOMIC LEVEL, MACROECONOMIC MODELS, MACROECONOMICS, MARGINAL PRODUCT, MARKET VALUE, MATURITY, MONETARY FUND, MONETARY POLICY, OPEN ECONOMIES, OPEN ECONOMY, ORGANIZATIONAL FORM, OUTPUT, POLITICAL ECONOMY, PORTFOLIOS, POSITIVE COEFFICIENT, POSITIVE COEFFICIENTS, PRIVATE INVESTMENT, PRODUCTIVE INVESTMENT, PROPERTY RIGHTS, REAL EXCHANGE RATE, REAL INTEREST, REAL INTEREST RATE, REGULATORY REGIME, RETURNS, RULE OF LAW, STOCK MARKET, STOCK MARKET CAPITALIZATION, STOCKS, SUBSTITUTION ELASTICITIES, TAX, TAX CREDITS, TAX POLICY, TAX RATES, TAX STRUCTURE, TAXATION, THEORETICAL MODELS, TRANSACTIONS COSTS, WORLD DEVELOPMENT INDICATORS,
Online Access:http://documents.worldbank.org/curated/en/2013/09/18194268/institutional-structural-determinants-investment-worldwide
http://hdl.handle.net/10986/16042
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