The aim of this paper is to quantify the importance of institutions in economic growth and to ide... more The aim of this paper is to quantify the importance of institutions in economic growth and to identify the factors that determine institutional quality. For this purpose, we estimate a system of simultaneous equations with an income equation and another one of institutional quality and use a broad sample of countries with very different levels of development. The analysis is also carried out for three sub-samples of different income levels. In addition, a test of the robustness of the results to econometric techniques is performed.
The aim of this paper is to contrast the theory of purchasing power parity (PPP) in the case of t... more The aim of this paper is to contrast the theory of purchasing power parity (PPP) in the case of the Spanish peseta against the dollar, the franc and the pound. The period of study covers the entire life of the peseta, which allows a long-term analysis. We use both bilateral and multilateral exchange rates. The results don't show evidence of PPP when we use the official exchange rates for the whole period, but PPP holds when these are replaced by the exchange rates quoted in the free market in Tangier during the decades of the forties and fifties.
Several empirical studies have established the relationship between economic freedom, civil liber... more Several empirical studies have established the relationship between economic freedom, civil liberties and political rights, and economic growth. Nevertheless, few studies analyze the directions of causality. This paper studies the causality relations between the institutional dimensions mentioned above and economic growth, as well as the interrelations between them, using the Granger methodology with panel data for 187 countries and five-yearly observations for the period 1976-2000. In addition, the relations between these freedoms and investment in physical and human capital are examined, to be able to isolate the direct and indirect effects on growth.
The aim of this paper is to quantify the importance of institutions in economic growth and to ide... more The aim of this paper is to quantify the importance of institutions in economic growth and to identify the factors that determine institutional quality. For this purpose, we estimate a system of simultaneous equations with an income equation and another one of institutional quality and use a broad sample of countries with very different levels of development. The analysis is also carried out for three sub-samples of different income levels. In addition, a test of the robustness of the results to econometric techniques is performed.
"The aim of this paper is to determine the most adequate... more "The aim of this paper is to determine the most adequate institutional variables to introduce into a growth model, depending on the income levels of countries. The results show that, for rich countries, the rule of law is fundamental while, for poor countries, it is control of corruption. This has important implications for any agenda of institutional reform in either
ABSTRACT "This paper shows that the inclusion of institutional indicators in a tradition... more 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." Copyright (c) 2007 The Authors. Journal compilation (c) Institute of Economic Affairs 2007.
The aim of this paper is to provide new empirical evidence about the determinants of per capita i... more The aim of this paper is to provide new empirical evidence about the determinants of per capita income in African countries, with particular attention to the affects of governance institutional quality and sub regional integration on income level. We use a sample of 49 countries from the period 1996-2004 and the Generalized Method of Moments Estimation model for dynamic panel, proposed by Arellano and Bond (1991). The results show that African regional groups with better institutions, higher degrees of regional integration cooperation, higher rates of investment in human capital and lower rates of population growth, show a higher level of per capita income.
The aim of this paper is to quantify the importance of institutions in economic growth and to ide... more The aim of this paper is to quantify the importance of institutions in economic growth and to identify the factors that determine institutional quality. For this purpose, we estimate a system of simultaneous equations with an income equation and another one of institutional quality and use a broad sample of countries with very different levels of development. The analysis is also carried out for three sub-samples of different income levels. In addition, a test of the robustness of the results to econometric techniques is performed.
The aim of this paper is to contrast the theory of purchasing power parity (PPP) in the case of t... more The aim of this paper is to contrast the theory of purchasing power parity (PPP) in the case of the Spanish peseta against the dollar, the franc and the pound. The period of study covers the entire life of the peseta, which allows a long-term analysis. We use both bilateral and multilateral exchange rates. The results don't show evidence of PPP when we use the official exchange rates for the whole period, but PPP holds when these are replaced by the exchange rates quoted in the free market in Tangier during the decades of the forties and fifties.
Several empirical studies have established the relationship between economic freedom, civil liber... more Several empirical studies have established the relationship between economic freedom, civil liberties and political rights, and economic growth. Nevertheless, few studies analyze the directions of causality. This paper studies the causality relations between the institutional dimensions mentioned above and economic growth, as well as the interrelations between them, using the Granger methodology with panel data for 187 countries and five-yearly observations for the period 1976-2000. In addition, the relations between these freedoms and investment in physical and human capital are examined, to be able to isolate the direct and indirect effects on growth.
The aim of this paper is to quantify the importance of institutions in economic growth and to ide... more The aim of this paper is to quantify the importance of institutions in economic growth and to identify the factors that determine institutional quality. For this purpose, we estimate a system of simultaneous equations with an income equation and another one of institutional quality and use a broad sample of countries with very different levels of development. The analysis is also carried out for three sub-samples of different income levels. In addition, a test of the robustness of the results to econometric techniques is performed.
"The aim of this paper is to determine the most adequate... more "The aim of this paper is to determine the most adequate institutional variables to introduce into a growth model, depending on the income levels of countries. The results show that, for rich countries, the rule of law is fundamental while, for poor countries, it is control of corruption. This has important implications for any agenda of institutional reform in either
ABSTRACT "This paper shows that the inclusion of institutional indicators in a tradition... more 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." Copyright (c) 2007 The Authors. Journal compilation (c) Institute of Economic Affairs 2007.
The aim of this paper is to provide new empirical evidence about the determinants of per capita i... more The aim of this paper is to provide new empirical evidence about the determinants of per capita income in African countries, with particular attention to the affects of governance institutional quality and sub regional integration on income level. We use a sample of 49 countries from the period 1996-2004 and the Generalized Method of Moments Estimation model for dynamic panel, proposed by Arellano and Bond (1991). The results show that African regional groups with better institutions, higher degrees of regional integration cooperation, higher rates of investment in human capital and lower rates of population growth, show a higher level of per capita income.
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Papers by Gema Fabro