The political economy of institutions, stability and investment: A simultaneous equation approach in an emerging economy. The case of South Africa

Journal of Development Studies

Volumn 44, Issue 7, 2008, Pages 1056-1079

  Fedderke, J W ^a   Luiz, J M ^b  

^a UNIVERSITY OF CAPE TOWN   (South Africa)

^b UNIVERSITY OF THE WITWATERSRAND   (South Africa)

Author keywords

[No Author keywords available]

Indexed keywords

INSTITUTIONAL FRAMEWORK; INVESTMENT; POLITICAL ECONOMY; POLITICAL INSTABILITY; STATE ROLE; TIME SERIES ANALYSIS; UNCERTAINTY ANALYSIS;

AFRICA; SOUTH AFRICA; SOUTHERN AFRICA; SUB-SAHARAN AFRICA;

EID: 52649130340     PISSN: 00220388     EISSN: 17439140     Source Type: Journal    
DOI: 10.1080/00220380802150854     Document Type: Article

References (56)

1. Abel, A. B. (1983) Optimal investment under uncertainty. American Economic Review, 73:1, pp. 228-233.
2. Abel, A. B. and Blanchard, O. J. (1988) The present value of profits and cyclical movements in investment. Econometrica, 54:2, pp. 249-273.
3. Abel, A. B. and Eberly, J. C. (1994) A unified model of investment under uncertainty. American Economic Review, 84:5, pp. 1369-1384.
4. Acemoglu, D. (2003) Root causes: A historical approach to assessing the role of institutions in economic development. Finance and Development, pp. 26-30.
5. Bertola, G. and Caballero, R. J. (1994) Irreversibility and aggregate investment. Review of Economic Studies, 61:2, pp. 223-246.
6. Bromberger, N. (1974) Economic growth and political change in South Africa. South Africa: Economic Growth and Political Change, pp. 61-124. Allison and Busby, London
7. Bromberger, N. (1978) Economic growth and political change in South Africa: A reassessment. Change, Reform and Economic Growth in South Africa, pp. 56-72. Ravan Press, Johannesburg
8. De Kadt, R. H. J. (2001) From apartheid to democracy: Logics of dissolution. Patterns of Continuity in Democracy and Human Rights in African-Hispanic Encounters, pp. 12-25. University Press of the South, New Orleans
9. Diamond, L. (1992) Economic development and democracy reconsidered. American Behavioural Scientist, 35:45, pp. 450-499.
10. Dixit, A. and Pindyck, R. (1994) Investment under Uncertainty, Princeton University Press, Princeton
11. Drazen, A. and Sakellaris, P. (1999)
12. Eisner, R. and Strotz, R. H. (1963) Determinants of Business Investment, in Impacts of Monetary Policy: A Series of Research Papers Prepared for the Commission on Money and Credit, Cliffs: Prentice-Hall, Englewood
13. Engerman, S. and Sokoloff, K. (2003)
14. Fedderke, J. W. (1997) Political and social dimensions of economic growth. Theoria, 89, pp. 1-42.
15. Fedderke, J. W. (2001)
16. Fedderke, J. W. (2004) Investment in fixed capital stock: Testing for the impact of sectoral and systemic uncertainty. Oxford Bulletin of Economic and Statistics, 66:2, pp. 165-188.
17. Fedderke, J. W. and Klitgaard, R. (1998) Economic growth and social indicators: An exploratory analysis. Economic Development and Cultural Change, 46:3, pp. 455-489.
18. Fedderke, J. W. and Luiz, J. M. (2007) Fractionalization and long-run economic growth: Webs and direction of association between the economic and the social - South Africa as a time series case study. Applied Economics, 39:8, pp. 1037-1052.
19. Fedderke, J. W., de Kadt, R. and Luiz, J. M. (2001) Indicators of political liberty, property rights and political instability in South Africa. International Review of Law and Economics, 21:1, pp. 103-134.
20. Fedderke, J. W., de Kadt, R. H. J. and Luiz, J. (2001) Growth and institutions: A study of the link between political institutions and economic growth in South Africa - a time series study, 1935-1997. Studies in Economics and Econometrics, 25:1, pp. 1-26.
21. Ferderer, J. P. (1993) The impact of uncertainty on aggregate investment spending: An empirical analysis. Journal of Money, Credit and Banking, 25:1, pp. 49-61.
22. Fielding, D. (1997) Aggregate investment in South Africa. Oxford Bulletin of Economics and Statistics, 59:3, pp. 349-369.
23. Fielding, D. (1999) Manufacturing investment in South Africa: A time series model. Journal of Development Economics, 58:2, pp. 405-428.
24. Greenslade, J., Hall, S. G. and Henry, S. G. B. (1999) On the practical identification of cointegrated systems with an application to UK wage and price setting. Paper presented at the African Econometrics Society Conference, Johannesburg, 2-3 July
25. Hartman, R. (1972) The effects of price and cost uncertainty on investment. Journal of Economic Theory, 5:2, pp. 258-266.
26. Hayashi, F. (1982) Tobin's marginal and average q. Econometrica, 50:1, pp. 213-224.
27. Henderson, S. (2004)
28. Huntington, S. P. (1968) Political Order in Changing Societies, Yale University Press, New Haven
29. Huntington, S. P. (1984) Will more countries become democratic?. Political Science Quarterly, 99:2, pp. 193-218.
30. Huntington, S. P. (1991) Democracy's third wave. Journal of Democracy, 2, p. (Spring), 12.
31. Johansen, S. (1988) Statistical analysis of cointegrating vectors. Journal of Economic Dynamics and Control, 12:2, pp. 551-570.
32. Johansen, S. and Juselius, K. (1990) Maximum likelihood estimation and inference on cointegration with applications to the demand for money. Oxford Bulletin of Economics and Statistics, 52:2, pp. 169-210.
33. Johansen, S. and Juselius, K. (1992) Testing structural hypotheses in a multivariate cointegrating analysis of the PPP and the UIP for UK. Journal of Econometrics, 53:1, pp. 211-244.
34. Jorgenson, D. W. (1963) Capital theory and investment behavior. American Economic Review, pp. 247-259.
35. Kularatne, C. (2002) An examination of the impact of financial deepening on long-run economic growth: An application of VECM structure to a middle-income country context. South African Journal of Economics, 70:4, pp. 647-687.
36. Lipset, S. M. (1959) Some social requisites of democracy: Economic development and political legitimacy. American Political Science Review, 53:1, pp. 69-105.
37. Luiz, J. M. (2001) Temporal association, the dynamics of crime, and their economic determinants: A time series econometric model of South Africa. Social Indicators Research, 53:1, pp. 33-61.
38. Luiz, J. M. (2008)
39. Mariotti, M. (2002) An examination of the impact of Economic policy on long run economic growth: An application of a VECM structure to a middle-income context. South African Journal of Economics, 70:4, pp. 688-724.
40. Muller, E. N. (1997) Economic determinants of democracy. Inequality, Democracy, and Economic Development, pp. 133-155. Cambridge University Press, Cambridge
41. Mussa, M. (1977) External and internal adjustment costs and the theory of aggregate and firm investment. Econometrica, 29:3, pp. 632-649.
42. North, D. (1990) Institutions, Institutional Change, and Economic Performance, Cambridge University Press, New York
43. O'Dowd, M. (1974) South Africa in the light of the stages of economic growth. South Africa: Economic Growth and Political Change, pp. 29-44. Allison and Busby, London
44. O'Dowd, M. (1978) The stages of economic growth and the future of South Africa. Change, Reform and Economic Growth in South Africa, pp. 28-50. Ravan Press, Johannesburg
45. Pesaran, M. H. and Shin, Y. (1995)
46. Pesaran, M. H. and Shin, Y. (1995)
47. Pesaran, H., Shin, Y. and Smith, R. (1996)
48. Rawls, J. (1971) A Theory of Justice, Oxford University Press, Oxford
49. Sen, A. (1999) Development as Freedom, Alfred A. Knopf, New York
50. Sensenbrenner, G. (1991) Aggregate investment, the stock market, and the q-model: Robust results for six OECD countries. European Economic Review, 35:4, pp. 769-832.
51. Taylor, C. (1985) Kant's theory of freedom. Philosophy in the Human Sciences: Philosophical Papers II, pp. 318-338. Cambridge University Press, Cambridge
52. Tobin, J. (1969) A general equilibrium approach to monetary theory. Journal of Money, Credit and Banking, 1:1, pp. 15-29.
53. Tobin, J. and Brainard, W. C. (1968) Pitfalls in financial model building. American Economic Review, 58:2, pp. 99-122.
54. Tobin, J. and Brainard, W. C. (1977) Asset markets and the cost of capital. Economic Progress, Private Value, and Public Policy, pp. 235-262. North Holland, New York
55. Wickens, M. R. (1996) Interpreting cointegrating vectors and common stochastic trends. Journal of Econometrics, 74:2, pp. 255-271.
56. Wood, E. J. (2000) Forging Democracy from Below: Insurgent Transitions in South Africa and El Salvador, Cambridge University Press, Cambridge