The role of institutions in mitigating the risk of push and pull factors on economic growth
It is widely acknowledge that both push (global) and pull (domestic) factors can be important in driving foreign capital flows. While both the risk from push and pull factors are able to direct or indirectly cripple economic growth, it is essential for the countries to deal and adequately manage...
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| Format: | Conference or Workshop Item |
| Language: | English English |
| Published: |
2018
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/92050/1/vietnam%20conference.pdf http://irep.iium.edu.my/92050/13/92050_The%20role%20of%20institutions%20in%20mitigating.pdf http://irep.iium.edu.my/92050/ |
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| Summary: | It is widely acknowledge that both push (global) and pull (domestic) factors can be important in
driving foreign capital flows. While both the risk from push and pull factors are able to direct or
indirectly cripple economic growth, it is essential for the countries to deal and adequately
manage both the push and pull factors. The main objective in this study is to analyze the role of
institutional quality both political and social institutions in mitigating the potential adverse
effects of push and pull factors on growth. We provide new evidence the relationship between
political and social institutions, push or pull factors, and economic growth. Generally, our
finding indicate that institutions quality play an important role in mitigating several components
of both push and pull push factors. Good political institutional, high democracy and stable
political institutions positively and significantly offsetting the negative effect of push factors
global uncertainty shocks and changes of global growth rate on growth, while weak social
problems assist country in alleviating potential severe of destructive global interest rate on
country. The results robust using several proxies of political institutions. For pull factor,
political stability assist country in reducing negative effect of inflation uncertainty, while social
cohesion reduce the detriment of high debt. We confirm that improvement institutional quality
both political and social institutions especially political institutions be an imperative strategy in
ensuring the effectiveness of policies on mitigating the changes of changes of global factors risk
shocks. The policymakers should take advantages from the findings of this research in search for
strategy stability on financial and macroeconomic to boost economic growth. |
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