Ross Levine and David Renelt's (LR) paper [1992] investigate the "robustness" of the relationship between growth, investment, and variables of interest using Leamer's [1985] Extreme Bounds Analysis (EBA). LR claim that few economic variables have a robust relationship with either long-run...

Using levels of democratic development as a proxy for economic development, and using a 2SLS GMM dynamic panel estimation methodology, we investigate the degree and direction of dissemination in the volatility of economic growth. Our findings indicate two essential points. First, there are...

This paper investigates the relationship between political regimes and Foreign Direct Investment (FDI) inflows to the developing countries for a sample of 134 countries over the 1983-2002 period. Using two categorical measures of regime type and three different measures of FDI, this study finds...

This paper examines whether democracy promotes financial development. While cross-section results show a positive association between democracy and bank development, this relationship disappears in panel regressions. The data also reveals that democracy is not positively related to stock market...

This paper employs dynamic panel generalized method of moment (GMM) technique to empirically examine the causal relationship between democracy and growth volatility for a sample of 138 countries over the 1968-2002 period. Improving upon the methodology of earlier papers, this study finds that...

Recent work suggests that countries with good institutions can escape the resource curse. This article shows that in the developing countries where the curse is of primary concern, institutional quality does not seem to have much influence; instead, it appears that it is a country's policies which...

This study empirically investigates the effects of political and economic liberalization on growth volatility using a difference-in-difference method for a sample of 158 countries over the 1970-2005 period. The results show that, when examined separately, economic liberalization leads to a...