Public Policies, Institutions, and Economic Growth in Low-income and Lower Middle-income Countries: Further Empirical Evidence

• DOI: 10.13189/aeb.2017.050802
• Publication Date: 2017-09-07T01:42:07Z
• Authors: Minh Quang Dao
• Keywords: Equity

This paper examines the impact of public policies and institutions on economic growth in developing countries.The current study is superior to that by Dao [16] we specify a neoclassical model which incorporates subsequently formulate an empirical be estimated.This approach not only provides more solid theoretical framework but also yields better results are biased due misspecification.Based data from World Bank for 2000-2015 period sample thirty-nine low-income lower middle-income economies find rate GDP dependent country's management its debt policy, structural regarding financial sector business regulatory environment, social inclusion equity dealing with gender equality, building human resources, protection labor, along rates inputs such as land, physical capital, general government consumption, net exports.We observe coefficient estimates two explanatory variables, namely, do have their expected sign, possibly collinearity between policy variable, environment resources labor variable equality variable.We note significant using t-test, exclusion decrease power measured adjusted determination.We suspect this three variables.Statistical examination will assist governments countries focus appropriate those nature improving providing order foster growth.Public institutions, other hand, seem influence growth.