The formal and informal institutional framework of capital accumulation

This paper studies the impact of social trust and formal legal and institutional determinants of capital accumulation in a panel of countries. It reports that formal determinants and trust interact, and that the two are substitutes. Specifically, the marginal impact of formal legal institutions decreases with trust, and vice versa. These findings apply both to total investment and to its foreign component, foreign direct investment.

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Year of publication:	2013-10-07
Authors:	Méon, Pierre-Guillaume ; Sekkat, Khalid
Institutions:	Centre Emile Bernheim, Solvay Brussels School of Economics and Management
Subject:	investment \| foreign direct investment \| institutions \| trust

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Extent:	application/pdf
Series:	Working Papers CEB.
Type of publication:	Book / Working Paper
Notes:	Published by: The text is part of a series Working Papers CEB Number 13-036 35 pages long
Classification:	E20 - Consumption, Saving, Production, Employment, and Investment. General ; E22 - Capital; Investment (including Inventories); Capacity ; F21 - International Investment; Long-Term Capital Movements ; O11 - Macroeconomic Analyses of Economic Development
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010699087