Fconomlc Growth TbdolEd

aov€dms( d. Lv.ls @mpomi* momllrv |$licv objdriv's' lh'Fbv Nlrin8 in inaalion'
(t .he olhs hdd, qvin8s F$lr i. low.r d'br lnd lorcr infldion Orhs o(ftlalid
ccfFcients shov th.t counkies wilh cuNnr @dnt suDlus *ould htv' highs svings' tnd
Th€ e*imation Eel$ ol..rlv indicde 0 Nbusl posiliv€ idptcr of insrn ional viriablcs on
gr.Mh. In model I (Iable 3l) all varisbl€s hsvc sigfi ond e€ highl) signilient
'xpeded
speciicrlly, initialGDP shd*ing qpeckl] n.Salivc sign md highlv signitcdt This oletrlv
indioles lhe sien oi snve.8.n€ .s pDposd in 8ruq$ lheoris Nerative sisn shows
ountid *nh b{er inii.l GDP havc expcricnoud t higl goMh ale dd a nigh posibilitv of
Elching up. In o simuhtioD b inv.stigaE rne chd@s of utmnditioml oDvsgdce rh€
Es@her leied the ndjel bv diding in$nudmal vuitblB liDm ine equadon Th€ sul of
lhe equlrid sho* m indiolim of un@ndilioiol sv'4p@ s sisn for inidar CDP p'r
capih Nd 'esa,liw bd i6ig)lifi@l Thh maN th i'ritdim'l F fodre is a po*ible
panqditiM fdonve4rc Mmwr, o€mll liSnifi@ of ortFr indeDq'rlenl vditblcs
ale imFo6 *hcn d i.$iruiidd vritblt i3 inulducal in $e nod€l Andts obd
ydjrbles, innalio. wilh etpdcd ncsttih sign h hiShlv signinqnl al a l% l*l in lll
modeb. Thtu suggests rhal @mnmic iNttbilitv hs ' estlilc eff€cl on ecmmic
gb$,lh. ttdcn pu$uing Flici.s ol i.l alion ,idnc'n S6*h
mighl not b€ fruilfol in long
on. cctici.nt of evings als cmlins po3iliv. tnd highly signifiont al a l% level
$ouehoul; cldly sho*ing thal svin8s is insinncnidl ro sro*lh
as it incrcs ctpilal
o@usllarion dd jnvenoenB wilh Positivc arpeted sisn, s.vins ihprcls gn*1h thnugh
ircdshs inv€stncnls, hen@ rcneins i poslrivc tlrlionship Public invslmeDt dfioient
sle shoNs a signifi@l Fxhivc sign iFplying thot inileruotuE investn€nts prcvide posilive
ar@'iliq thdEby inr6ing p'dluclivity od so*di. Atothe. fom of inr6tnd! sfiich
dld p'oJdr a p6iriv. signifioni log run clf-r on gdrh is iDv€ring i' hlllfu catihl