Template-type: ReDIF-Paper 1.0
Author-Name: Crombrugghe, Denis de
Author-Email: d.decrombrugghe@maastrichtuniversity.nl
Author-Workplace-Name: School of Business and Economics, Maastricht University
Author-Name: Farla, Kristine
Author-Email: farla@merit.unu.edu
Author-Workplace-Name: UNU-MERIT / MGSOG, Maastricht University
Title: Preliminary conclusions on institutions and economic performance  
Abstract: Using institutional indicators describing 122 countries, we conduct an
	 exploratory study highlighting which institutional characteristics
	 differ across countries with different levels of income and rates of
	 growth. We describe a country's institutions by the degree of
	 formalization of its regulations, the depersonalization of their
	 implementation, and by the degree of control and intervention of the
	 state. Our findings reveal that the variation in state control and
	 intervention decreases along with countries formalization of
	 regulations. This phenomenon may be explained by institutional
	 convergence, by endogeneity in the data and/or by bias. In addition, we
	 find evidence of a strong relationship between institutions and income
	 levels; however, we find no such evidence on growth rates. We find mixed
	 evidence for a relationship between institutions and growth volatility.
Classification-JEL: O11, O43
Keywords: Institutions, Economic performance, Growth 
Series: UNU-MERIT Working Papers
Creation-Date: 2012
Number: 2012-035
File-URL: https://unu-merit.nl/publications/wppdf/2012/wp2012-035.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2012035