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Student Number 93444006
Author Tuan-Yuen Kong(dY)
Author's Email Address No Public.
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Department Graduate Institute of Industrial Economics
Year 2008
Semester 2
Degree Ph.D.
Type of Document Doctoral Dissertation
Language English
Title Three Essays on Institution and Economic Growth
Date of Defense 2009-05-27
Page Count 62
Keyword
  • economic freedom
  • economic growth
  • Institution
  • political liberalization
  • Abstract The role of institutions in economic growth has recently begun to receive greater attention in academic circles. Although the impact of institutions has been acknowledged by most, definitive conclusions still remain a question. In the chapter 2, we use ordinary least squares estimation to consider the nexus between political liberalization and economic freedom. We could find conclusions for different aspects when controlling one or the other. In the chapter 3, we focus on the influence that the underlying components of economic freedom have on economic growth. We find that these two institutional variables are conditionally dependant on each others different levels, and have different impacts on economic growth. Besides, political liberalization has a non-linear relationship with economic growth. We investigate the relationship among openness, democracy, and economic development in chapter 4. The openness has an ambiguous impact on economic development and the empirical findings in the democracy-economic growth literature are also mixed, thus it causes this study difficult. A recent theoretical paper focuses on the relationship among these variables and provides some interestingly concluding remarks. The main purpose of this chapter is to use appropriate empirical approach to examine the theoretical perspective of the relationship among the openness democracy, and economic growth. In brief, we could not find the support for the first proposition that in an oligarchic (means non-democracy) society, public expenditure conducive to development is typically lower in an open than a closed economy.
    Table of Content Contents
    Chapter 1: Introduction 1
    Chapter 2: The impact of the political liberalization-economic freedom nexus on economic growth 3
    I. Introduction 3
    II. Methodology and data 5
    III. Empirical results 8
    IV. Sensitivity analysis 11
    V. Conclusion 13
    References 15
    Chapter 3: The components of economic freedom, political liberalization and economic growth 25
    I. Introduction 25
    II. Methodology and data 29
    III. Empirical analysis 33
    IV. Implications and conclusions 37
    References 39
    Chapter 4: The openness, democracy and economic development 45
    I. Introduction 45
    II. Literature Review 46
    III. Empirical model, methodology and data 49
    IV. Empirical findings 53
    V. Discussion and Conclusions 55
    References 56
    Chapter 5: Conclusions 62
    List of Tables
    Table 2.1: Definition and sources of the major variables 18
    Table 2.2: The descriptive statistics (mean) of major variables19
    Table 2.3: Political liberalization, economic freedom and economic growth 20
    Table 2.4: Political liberalization-economic freedom nexus and economic growth 21
    Table 2.5: Sensitivity results:
    Political liberalization, economic freedom and economic growth 22
    Table 2.6: Sensitivity results:
    Political liberalization-economic freedom nexus and economic growth 23
    Appendix: Fixed effect model estimation results 24
    Table 3.1: The descriptive statistics of the components of economic freedom 42
    Table 3.2: The components of economic freedom and economic growth 43
    Table 3.3: The components of economic freedom, political liberalization and economic growth 44
    Table 4.1: Definition, instruments and sources of each variable58
    Table 4.2: Democracy, openness and government expenditure 60
    Table 4.3: Democracy, openness, and economic growth 61
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    Berlin, I., 1969. Two concepts of liberty. Four Essays on Liberty. Oxford: Clarendon Press, 121-154.
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    Buchanan, J., Tollison, R., Tullock, G., 1980. Toward a Theory of the Rent-Seeking Society. Texas: Texas A & M University Press.
    Carlsson, F., Lundstrom, S., 2002. Economic freedom and growth: decomposing the effects. Public Choice 112, 335-344.
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    Dawson, J., 1998. Institution, investment, and growth: new cross-country and panel data evidence. Economic Inquiry 36, 603-619.
    Dawson, J., 2003. Causality in the freedom-growth relationship. European Journal Political Economy 19, 479-495.
    De Haan, J., Siermann, C., 1998. Further evidence on the relationship between economic freedom and economic growth. Public Choice 95, 363-380.
    De Haan, J., Sturm, J-E., 2000. On the relationship between economic freedom and economic growth. European Journal of Political Economy 16, 215-241.
    De Haan, J., Lundstrom, S., and Sturm, J-E., 2006. Market-oriented institutions and policies and economic growth: A critical survey. Journal of Economic Surveys 20, 157-191.
    Friedman, M., 1991. Economic Freedom, Human Freedom, Political Freedom, Speech delivered at The Smith Center for Private Enterprise Studies. Hayward: California State University.
    Gallup, J., Sachs, J., Mellinger, A., 1998. Geography and environment. NBER Working Paper No. w6849.
    Giavazzi, F., Tabellini, G., 2005. Economic and political liberalization. Journal of Monetary Economics 52, 1297-1330.
    Gwartney, J., Lawson, R., 2008. Economic Freedom of the World: 2008 Annual Report. Vancouver: The Fraser Institute.
    Gwartney, J., Lawson, R., Holcombe R., 1999. Economic freedom and the environment for economic growth. Journal of Institutional and Theoretical Economic 155, 643-663.
    Gwartney, J., Lawson R., Holcombe R., 2006. Institutions and the impact of investment on growth. Kyklos 59, 255-273.
    Hall, R., Jones, C., 1999. Why do some countries produce so much more output per worker than others? Quarterly Journal of Economics 114, 83-116
    Heckelman, J., Stroup, M., 2000. Which economic freedoms contribute to growth? Kyklos 53, 527-544.
    Lucas, R. Jr., 1988. On the mechanics of economic development. Journal of Monetary Economics 22, 3-42.
    Paldam, M., Wurtz, A., Gorgens, T., 2003. The Big Bend: Economic Freedom and Growth. University of Aarhus, mimeo.
    Przeworski, A., Limongi, F., 1993. Political regimes and economic growth. Journal of Economic Perspective summer, 51-69.
    Romer, P., 1986. Increasing returns and long-run growth. Journal of Political Economy 98, 1002-1037.
    Romer, P., 1990. Endogenous technological change. Journal of Political Economy 98, 71-102.
    Sachs, J., 2003. Institutions dont rule: direct effects of geography on per capita income. NBER Working Paper No. 9490.
    Scully, G., 1988. The institutional framework and economic development. Journal of Political Economy 96, 652-666.
    Solow, R., 1956. A contribution to the theory of economic growth. Quarterly Journal of Economics 70, 65-94.
    Tullock, G., Seldon, A., Brady, G., 2000. Government: Whose Obedient Servant? London: The Institute of Economic Affairs.
    Wu, W., Davis, O., 1999a. The two freedoms in a growth model. Journal of Private Enterprise 14, 115-143.
    Wu, W., Davis, O., 1999b. The two freedoms, economic growth and development: an empirical study. Public Choice 100, 39-64.
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    Advisor
  • Yun-Peng Chu(P)
  • Files
  • 93444006.pdf
  • approve immediately
    Date of Submission 2009-07-07

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