Rule of Law and Economic Growth

Shevchuk, Victor; Blikhar, Mariia; Komarnytska, Iryna; Tataryn, N. M.

doi:10.18371/fcaptp.v1i32.200522

Cited by 4 publications

(3 citation statements)

References 22 publications

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“…Consistent with the findings of Shevchuk et al. (2020), this study observed positive effect of RL on economic growth.…”

Section: Empirical Results and Their Discussionsupporting

confidence: 91%

“…Consistent with the findings of Shevchuk et al (2020), this study observed positive effect of RL on economic growth. By giving people access to justice, guaranteeing due process and enabling remedies for rights violations, the RL promotes development by enhancing the voices of people and communities.…”

Section: Ajebsupporting

confidence: 91%

“…Rule of law has been included as another proxy of institutional difference. A nation’s economic development is significantly influenced by its laws and legal framework (Shevchuk et al ., 2020). By establishing RL, a country becomes able to attract more investors who value security, safety and protection.…”

Section: Methodsmentioning

confidence: 99%

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Does macroeconomic stability promote economic growth? Some econometric evidence from SAARC countries

Siddik

2023

AJEB

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PurposeThe main purpose of this research is to examine the influence of macroeconomic stability on economic growth of SAARC (South Asian Association for Regional Cooperation) countries.Design/methodology/approachUsing panel data of 1991–2020, fixed effect regression analysis, pooled ordinary least squares and generalized method of moments techniques have been conducted to demonstrate whether macroeconomic stability contributes to economic growth. Moreover, cross-sectional dependency test, unit root test, correlation analysis and granger causality tests have been run.FindingsRobust findings indicate that inflation has negative impacts on economic growth which indicates that lower level of macroeconomic instability promotes countries’ economic growth. This study also observed that foreign direct investment, domestic credit delivered to private sector, currency exchange and institutional difference across countries are affirmatively connected while labor force is negatively associated with economic growth.Originality/valueEmpirical findings of this study signify that macroeconomic stability have significant effects on economic growth. Findings of this study have superior contributions for the policy makers to achieve sustainable economic growth.

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“…Consistent with the findings of Shevchuk et al. (2020), this study observed positive effect of RL on economic growth.…”

Section: Empirical Results and Their Discussionsupporting

confidence: 91%

Section: Ajebsupporting

confidence: 91%

See 1 more Smart Citation

Does macroeconomic stability promote economic growth? Some econometric evidence from SAARC countries

Siddik

2023

AJEB

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The Rule of Law and Inflation in the Middle-Income Countries

et al. 2021

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The article analyzes the relationship between compliance with the rule of law and inflation. Annual data for the period of 2013-2019 of the Rule of Law Index from the nongovernmental organization World Justice Project (WJP) for 40 countries of Central and Eastern Europe, the former Soviet Union, Asia and Latin America were used. By means of cross-section estimates and panel data using a random effects model (RE), the dependence of inflation on individual WJP sub-indices was empirically estimated, taking into account a wide analytical spectrum of different aspects of the rule of law. Recently, the issue of the rule of law is increasingly used in economic research. First of all, it concerns the dependence of transaction funds and trust on legal factors, which has a direct impact on the funds of production and inflation, as emphasized by the representatives of the new institutional school (New Institutional Economics). Instead, Neoclassical economics economists mainly analyze the influence of the rule of law mechanisms on the formation of trust in such institutions as the independent central bank or the state administrative apparatus. There is no lack of empirical evidence that the anti-inflationary influence of the central bank significantly depends on the concomitant conditions of compliance with the rule of law. Keynesian economics experts state that the importance of legal and regulatory norms increases significantly with a low interest rate (Zero Lower Bound-ZLB), which has been the case recently in most industrialized countries. Since the academic interpretation of the rule of law is quite broad, it is of practical interest to study the relevant macroeconomic effects in terms of such individual components as the system of counterbalances and checks for government, the fight against corruption, maintenance of law and order, efficiency of regulatory mechanisms, etc. The study showed that there is no reason to deny the anti-inflationary impact of the rule of law in general and in terms of individual components, but the obtained empirical estimates may be vulnerable to data aggregation and differ in terms of individual groups of countries. If we use the general index of the rule of law of the WJP, the anti-inflationary effect can be traced both for the general sample of 40 countries, and separately for both subgroups of countries: 1) Central and Eastern Europe (CEE) and the former Soviet Union, 2) Asia and Latin America. The use of WJP sub-indices shows an antiinflationary effect for the general sample of countries and subgroups of CEE countries and the

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Financial Security of the State: International Experience in the Study of Institutional and Legal Causes of Crisis Phenomena in the Economy

et al. 2021

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Abstract. The article maps out the topical issue of reinforcing the financial and economic security of our country by switching from uncritical compliance with standard requirements of financial institutions affecting the provision and amount of international loans to development of own economic policy on the basis of rethinking the reasons for the unsatisfactory state of the financial and economic security of Ukraine. The purpose of the article is to study the issue of increasing the sustainability of the financial system of Ukraine taking into consideration foreign experience and to determine the main direction of its provision with the emphasis on the priority development of the real sector of the economy. The financial security issue has become of paramount importance and relevance not only for Ukraine but for other countries as well. The study of foreign experience showed that stagflation of the 1970s provoked an erroneous neoliberal economic reaction. Policy responses were focused on deregulation of markets, in particular labour and financial markets, on the one hand, and on achieving the price stability instead of full employment on the other hand. This neoliberal «counterrevolution» created the conditions for the emergence of «financialization» or «finance-dominated capitalism» since the early 1980s first in the USA and Great Britain and then spread around the world. Over the past 30 or so years, finance began to dominate the industry, and non-financial corporations are increasingly engaged in financial rather than production activities. For instance, in Japan it resulted in the Great Recession. In Ukraine such policy has been implemented since the early 2000s under the influence of IMF requirements. As a result, the economy has lost the ability to provide a decent standard of living for the population and encouraged the labour migration and the increase of debt burden which was practically unavoidable without catastrophic consequences for state sovereignty. It is proposed to redirect the economic policy of Ukraine from spontaneous development of the «mechanism of financialization» to the creation of a mechanism for the development of real economy and effective creation of high-wage jobs complemented by the social responsibility of entrepreneurs and improving the regulatory requirements for legal regulation of public relations related to ensuring the financial security of the state. Keywords: financial security, gross external debt, liability, social responsibility, law, labour migration; employment of population, budget deficit. JEL Classification Е02, H63, K10, M14, O11 Formulas: 0; fig.: 2; tabl.: 1; bibl.: 26.

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Rule of Law and Economic Growth

Cited by 4 publications

References 22 publications

Does macroeconomic stability promote economic growth? Some econometric evidence from SAARC countries

Does macroeconomic stability promote economic growth? Some econometric evidence from SAARC countries

The Rule of Law and Inflation in the Middle-Income Countries

Financial Security of the State: International Experience in the Study of Institutional and Legal Causes of Crisis Phenomena in the Economy

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