A MODEL OF GROWTH AUGMENTED WITH INSTITUTIONS |
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| Authors: | José Aixalá Gema Fabro |
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| Institution: | University of Zaragoza, Spain |
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| Abstract: | This paper shows that the inclusion of institutional indicators in a traditional model of growth substantially improves its explanatory capacity. The results have implications for economic policy, because not all the dimensions of institutional quality influence growth to the same extent. A large sample of 165 countries and estimation methods with instrumental variables are used to solve endogeneity problems. |
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