Impact of Institutional Quality on Human Rights Abuses in Transition Economies

This purpose of this paper is to examine the direct effects of institutional quality on human rights abuses in transition economies. We make use of an alternative empirical approach for evaluation of institutional systemís development in transition economies developed by Chousa et al. (2005). To assess this relationship, along with institutional quality index, which is an operational indicator of institutional system dynamics to observe institutional reforms-economic growth interdependence, we also construct cost of decline in institutional quality and transition from communist to reforms years variables. We also evaluate the effect of institutional quality on human rights abuses conditioned by the level of transition from communist to reforms years. The empirical work reveals that an improvement in institutional quality increases government respect for human rights. While, any decline in institutional quality leads to human rights abuses. The results also show that government respect for human rights are strongly associated with transition towards reforms years.http://deepblue.lib.umich.edu/bitstream/2027.42/64424/1/wp928.pd

A model of growth and finance: FIML estimates for India

Many empirical works addressed the nature of the relationship between economic growth and financial developments. Although these studies concede that they are interdependent, they have used single equations methods for estimation. In particular in the country specific studies the Granger causality tests are applied to equations estimated with the single equations methods to determine whether financial developments cause growth or vice versa. This paper uses the full information maximum likelihood method to estimate a two equations model of growth and finance for India. We also argue that in virtually all these empirical works the specification of the output equation is unsatisfactory. Our results with the Indian data show that there is no evidence to support the view that finance follows where enterprise goes. Furthermore, financial developments have a small but significant permanent growth effect in India.Steady State Growth Rate, Financial Development, Solow Model, Simultaneous Equation Model and FIML Estimates

Do Economic, Financial and Institutional Developments Matter for Environmental Degradation? Evidence from Transitional Economies

Several studies have examined the relationship between environmental degradation and economic growth. However, most of them did not take into account financial developments and institutional quality. Moreover, Stern (2004) noted that there are important econometric weaknesses in the earlier studies, such as endogeneity, heteroscedasticity, omitted variables, etc. The purpose of this paper is to fill this gap in the literature by investigating the linkage between not only economic development and environmental quality but also financial development and institutional quality. We employ the standard reduced-form modelling approach to control for country-specific unobserved heterogeneity and GMM estimation to control for endogeneity. Our study considers 24 transition economies and panel data for 1993-2004. Our results support the EKC hypothesis while confirming the importance of both institutional quality and financial development for environmental performance. We also found that financial liberalization may be harmful for environmental quality if it is not accomplished in a strong institutional framework.Environmental Degradation, Economic Development, Financial Development, Institutional Quality, EKC

Do Economic, Financial and Institutional Developments Matter for Environmental Degradation? Evidence from Transitional Economies

Several studies have examined the relationship between environmental degradation and economic growth. However, most of them did not take into account financial developments and institutional quality. Moreover, Stern (2004) noted that there are important econometric weaknesses in the earlier studies, such as endogeneity, heteroscedasticity, omitted variables, etc. The purpose of this paper is to fill this gap in the literature by investigating the linkage between not only economic development and environmental quality but also financial development and institutional quality. We employ the standard reduced-form modelling approach to control for country-specific unobserved heterogeneity and GMM estimation to control for endogeneity. Our study considers 24 transition economies and panel data for 1993-2004. Our results support the EKC hypothesis while confirming the importance of both institutional quality and financial development for environmental performance. We also found that financial liberalization may be harmful for environmental quality if it is not accomplished in a strong institutional framework.Environmental Degradation, Economic Development, Financial Development, Institutional Quality, EKC.

IMPACT OF INSTITUTIONAL QUALITY ON HUMAN RIGHTS ABUSES IN TRANSITION ECONOMIES

This purpose of this paper is to examine the direct effects of institutional quality on human rights abuses in transition economies. We make use of an alternative empirical approach for evaluation of institutional system’s development in transition economies developed by Chousa et al. (2005). To assess this relationship, along with institutional quality index, which is an operational indicator of institutional system dynamics to observe institutional reforms-economic growth interdependence, we also construct cost of decline in institutional quality and transition from communist to reforms years variables. We also evaluate the effect of institutional quality on human rights abuses conditioned by the level of transition from communist to reforms years. The empirical work reveals that an improvement in institutional quality increases government respect for human rights. While, any decline in institutional quality leads to human rights abuses. The results also show that government respect for human rights are strongly associated with transition towards reforms years.Institutional Quality; Human Rights; Transition economies

IMPACT OF INSTITUTIONAL QUALITY ON HUMAN RIGHTS ABUSES IN TRANSITION ECONOMIES

This purpose of this paper is to examine the direct effects of institutional quality on human rights abuses in transition economies. We make use of an alternative empirical approach for evaluation of institutional system’s development in transition economies developed by Chousa et al. (2005). To assess this relationship, along with institutional quality index, which is an operational indicator of institutional system dynamics to observe institutional reforms-economic growth interdependence, we also construct cost of decline in institutional quality and transition from communist to reforms years variables. We also evaluate the effect of institutional quality on human rights abuses conditioned by the level of transition from communist to reforms years. The empirical work reveals that an improvement in institutional quality increases government respect for human rights. While, any decline in institutional quality leads to human rights abuses. The results also show that government respect for human rights are strongly associated with transition towards reforms years.Institutional Quality; Human Rights; Transition economies.

Does Growth & Quality of Capital Markets drive Foreign Capital? The case of Cross-border Mergers & Acquisitions from leading Emerging Economies

Is there any interrelationship between firm level FDI in the form of cross border Mergers & Acquisitions and capital markets growth and quality? We addressed this question using panel data of cross border M & A for nine emerging economies. Our study period goes from 1987 to 2006. We find that the stock market variables, viz., capitalization and value addition encourage the number of deals and value of cross border Mergers & Acquisitions. However, the association with regulatory and financial reforms is much stronger and robust.http://deepblue.lib.umich.edu/bitstream/2027.42/64368/1/wp911.pd

What is the Long Run Growth Rate of the East Asian Tigers?

New panel data estimates for the four East Asian Tigers show that the contribution of total factor productivity (TFP) to growth is much higher than past estimates. An extended production function with learning by doing implies that TFP is about 3.5% and these countries will grow at this rate in the long run.Asian Tigers, Systems Dynamic GMM, Growth Accounting, Factor Accumulation as Residual.

Systems GMM estimates of the Feldstein-Horioka puzzle for the OECD countries and tests for structural breaks

A systems GMM estimation method is used to estimate the Feldstein-Horioka equation from 1960-2007 with a panel of 12 OECD countries. It is found that the Feldstein-Horioka puzzle exists in a weaker form with a much reduced saving retention coefficient. The Bretton Woods agreement in particular has weakened the Feldstein-Horioka puzzle by significantly improving international capital mobility. In comparison the Maastricht agreement seems to have improved capital mobility only by a small magnitude. The Blundell and Bond approach systems GMM method and the structural break tests of Mancini-Griffoli and Pauwels are used in this paper.Feldstein-Horioka puzzle, Structural breaks, Effects of Bretton Woods and Maastricht agreements on international capital mobility.

What is the Long Run Growth Rate of the East Asian Tigers?

New panel data estimates for the four East Asian Tigers show that the contribution of total factor productivity (TFP) to growth is much higher than past estimates. An extended production function with learning by doing implies that TFP is about 3.5% and these countries will grow at this rate in the long run.Asian Tigers, Systems Dynamic GMM, Growth Accounting, Factor Accumulation as Residual