Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/193913
Authors: 
Bougharriou, Nouha
Benayed, Walid
Gabsi, Foued Badr
Year of Publication: 
2019
Citation: 
[Journal:] Economics: The Open-Access, Open-Assessment E-Journal [ISSN:] 1864-6042 [Volume:] 13 [Year:] 2019 [Issue:] 2019-19 [Pages:] 1-29
Abstract: 
The purpose of the paper is to examine the direct and indirect links between democracy and economic growth. To do so, the authors estimate a dynamic panel simultaneous equations model on a sample of 16 Arab countries during the period 2002-2013. This study focuses on two particular channels through which democracy affects growth, namely FDI inflows and public consumption expenditure. The results show that there is no clear relationship between democracy and economic growth in the Arab countries, which confirms the skeptical approach. The ambiguity of this relationship can be explained by the fact that democracy promotes growth indirectly by stimulating FDI inflows and hinders growth by generating higher public consumption expenditure.
Subjects: 
democracy
economic growth
FDI
government spending
Arab world
dynamic panel simultaneous equations model
JEL: 
C3
O40
P16
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Article
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