POLITICAL INSTITUTIONS AND ECONOMIC GROWTH: A STRUCTURAL VAR APPROACH

The objective of this paper is to identify and assess the contribution of budgetary, monetary and institutional shocks affecting the economies of some developed and developing countries over the period 1976-2003. The methodology used is vector autoregressive models and structural recent techniques for the analysis of time series related. The empirical results show a significant relationship between the supply shock and institutions on the one hand, and between institutional shocks and economic activity on the other hand, for Tunisia, Indonesia, Brazil and the Democratic Republic of Congo. For Japan we could not detect a significant relationship between institutional shocks and economic activity