ABSTRACT

This paper examines the interactive impact of financial development and political institutions on a specific development outcome: gross domestic investment. We explore whether financial development and political institutions act as substitutes or complements in the context of domestic investment. Using data from the period 1975–2017 for 131 countries to construct annual and five-year interval panels, we employ Fixed Effect (FE) and Dynamic Panel estimators (System GMM) to test our hypothesis. We find a significant interactive impact of political institutions and financial development on domestic investment. More specifically, we find a substitution effect among these factors. In the presence of inefficient institutions, financial development mitigates the negative impact of political institutions on domestic investment, and vice-versa.

摘要

本文研究了金融发展和政治机构对特定发展成果：国内总投资的互动影响。我们探讨在国内投资的背景下，金融发展和政治制度是替代还是补充。我们使用1975-2017年间131个国家/地区的数据构建年度和五年间隔面板，我们采用固定效应（FE）和动态面板估计量（System GMM）来检验我们的假设。我们发现政治机构和金融发展对国内投资具有重大的互动影响。更具体地说，我们发现了这些因素之间的替代作用。在效率低下的机构的情况下，金融发展减轻了政治机构对国内投资的负面影响，反之亦然。