Media Freedom, Socio-Political Stability and Investment

32 Pages Posted: 24 Jan 2013

See all articles by Sudeshna Pal

Sudeshna Pal

Georgia College and State University

Nabamita Dutta

University of Wisconsin, La Crosse

Sanjukta Roy

World Bank

Multiple version iconThere are 2 versions of this paper

Date Written: 2013

Abstract

Using a panel of 138 countries over 1994-2005 we identify a channel through which a media free from government control promotes domestic investment. We hypothesize that as media becomes freer socio-political stability is enhanced due to the creation of a favorable business climate that attracts investment. A simultaneous equation model (SEM) where investment and socio-political stability are jointly determined, tests this hypothesis. Our analysis implies that as the media becomes freer, socio-political stability rises, by making the government more people-oriented. Socio-political stability, in turn, provides a favorable business climate and, thus, investment is enhanced. The SEM model points to significant correlations, but does not imply any causation.

Keywords: Media, Media freedom, Socio-political stability, Investment, Economic development

JEL Classification: O38, O43, P16

Suggested Citation

Pal, Sudeshna and Dutta, Nabamita and Roy, Sanjukta, Media Freedom, Socio-Political Stability and Investment (2013). Available at SSRN: https://ssrn.com/abstract=2206640 or http://dx.doi.org/10.2139/ssrn.2206640

Sudeshna Pal

Georgia College and State University ( email )

Milledgeville, GA

Nabamita Dutta (Contact Author)

University of Wisconsin, La Crosse ( email )

Dept. of Economics, 1725 State Street
La Crosse, WI 54601
United States
6087855294 (Phone)

Sanjukta Roy

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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