Институциональная среда и динамика инвестиций: анализ прямого и косвенного влияния

The article examines the direct and indirect effects of institutional quality on investment demand. Using the Rule of Law as a factor for institutional quality and a large cross-country sample and up-to-date data (2002–2022) with dynamic panel data analysis, GMM estimators, it is shown that weak institutions could slow investment demand by approximately 10 percent. In addition, the article finds the indirect influence of the institutional environment through the reduced sensitivity of investments to market regulators. It was empirically shown that under weak institutional conditions, and change in the interest rate leads to smaller changes in the level of investment demand. Robustness checks of the estimates support the reliability of the obtained results. From a policy perspective, this paper provides valuable insights for policymakers and practitioners on the effectiveness of targeted interventions to stimulate the investment demand