Year of Graduation
Empirical Study of Economy Growth Regimes
This thesis is devoted to the impact of the quality of economic and political institutions on the growth of the country. Raw sample included 159 countries in the period from 1976 to 2010. The strength and direction of this relationship are estimated by Markov-switching model. Determination of the best model specification is conducted endogenously, using information criteria. Thus, the model with three regimes of growth (stagnation, stable regime and the crisis) was chosen. As a result, it was found that stagnation and crisis regimes are softer for countries with high quality of political institutions. The probability of switching to a stable regime from the other one is positively related with the quality of the economic institutions, and for the probability of being in this mode at the current time. In addition, the proportion of time that the country spends in a stable regime also depends positively on the quality of economic institutions.