Institutional Quality Mediates the Effect of Human Capital on Economic Performance
This paper considers the relationship between institutional quality, educational outcomes, and economic performance. More specifically, it seeks to establish the linkages by which government effectiveness affects per capita income, via its mediatin...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/02/19154782/institutional-quality-mediates-effect-human-capital-economic-performance http://hdl.handle.net/10986/18361 |
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okr-10986-18361 |
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oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTABILITY ACCOUNTING AUTHORITY BENCHMARK BINDING CONSTRAINT BOND BUDGET MANAGEMENT BUREAUCRACY CAPITAL ACCUMULATION CAPITAL INVESTMENTS CAPITAL SHARE CAPITAL STOCK CAUSAL IMPACT CHECKS COMPARATIVE ECONOMICS COMPETITIVENESS COMPOSITE INDICATOR CONSUMPTION EXPENDITURE CORRUPTION COUNTRY CHARACTERISTICS COUNTRY DATA COUNTRY ESTIMATES COUNTRY FIXED EFFECTS CRITICAL IMPORTANCE DATA AVAILABILITY DATA COLLECTION DATA QUALITY DEBT DEMOCRACY DEMOCRATIC DEVELOPMENT DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING ECONOMIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DIMINISHING RETURNS DISCOUNT RATE ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC OUTCOMES ECONOMIC PERFORMANCE ECONOMICS ECONOMICS OF EDUCATION EDUCATIONAL ATTAINMENT EDUCATIONAL INSTITUTIONS EFFECT OF GOVERNANCE ENDOGENOUS VARIABLES EXOGENOUS RATES EXOGENOUS VARIABLES EXPENDITURE EXTERNALITIES FIGHTING CORRUPTION FINANCIAL MANAGEMENT FISCAL POLICY FIXED CAPITAL FUTURE RESEARCH GDP GDP PER CAPITA GOOD GOVERNANCE GOVERNANCE DATA GOVERNANCE DIMENSION GOVERNANCE FAILURES GOVERNANCE INDICATOR GOVERNANCE MEASURE GOVERNANCE MEASURES GOVERNANCE QUALITY GOVERNMENT CONSUMPTION GOVERNMENT EFFECTIVENESS GOVERNMENT EXPENDITURES GOVERNMENT SPENDING GROSS DEBT GROSS FIXED CAPITAL FORMATION GROWTH RATE GROWTH RATES HUMAN CAPITAL HUMAN CAPITAL INVESTMENTS HUMAN CAPITAL STOCK HUMAN DEVELOPMENT HUMAN DEVELOPMENT NETWORK INCOME GROUPS INCOME GROWTH INCOME LEVEL INCOME LEVELS INFLATION INFORMAL PAYMENTS INSTITUTIONAL CHANGE INSTITUTIONAL ENVIRONMENT INSTITUTIONAL ENVIRONMENTS INSTITUTIONAL FRAMEWORK INSTITUTIONAL MECHANISM INSTITUTIONAL QUALITY INSTITUTIONAL REFORM INSTITUTIONAL STRUCTURE INSTRUMENT INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT INVENTORIES INVESTING INVESTMENT MANAGEMENT LABOR MARKET LABOR-FORCE LESS DEVELOPED COUNTRIES MACROECONOMIC DATA MACROECONOMIC LEVEL MACROECONOMIC MANAGEMENT MACROECONOMIC POLICY MARGINAL PRODUCTIVITY MEASUREMENT ERROR MISMANAGEMENT MONETARY ECONOMICS NATIONAL INCOME NATIONS NET EXPORTS NPL OUTPUT PER CAPITA INCOME PER CAPITA INCOMES POLICY IMPLICATIONS POLITICAL ECONOMY POLITICAL PARTICIPATION POLITICAL REGIME POLITICAL STABILITY POSITIVE EFFECTS PRIMARY SCHOOL PRIVATE ENTITIES PRODUCTION FUNCTION PRODUCTION FUNCTIONS PROPERTY RIGHTS PUBLIC EXPENDITURE PUBLIC FINANCE PUBLIC FINANCES PUBLIC INVESTMENT PUBLIC SECTOR PUBLIC SPENDING RATES OF RETURN REGIONAL DUMMIES REGULATORY QUALITY REVERSE CAUSALITY RULE OF LAW SERVICE DELIVERY SOCIAL CAPITAL SOCIAL SECURITY STATE INCOME STOCK DATA STRUCTURAL CHANGE TECHNOLOGICAL CHANGE TECHNOLOGY TRANSFER TRANSPARENCY WAGE RATES WEALTH WORLD DEVELOPMENT INDICATORS WORLDWIDE GOVERNANCE INDICATORS YOUTH |
| spellingShingle |
ACCOUNTABILITY ACCOUNTING AUTHORITY BENCHMARK BINDING CONSTRAINT BOND BUDGET MANAGEMENT BUREAUCRACY CAPITAL ACCUMULATION CAPITAL INVESTMENTS CAPITAL SHARE CAPITAL STOCK CAUSAL IMPACT CHECKS COMPARATIVE ECONOMICS COMPETITIVENESS COMPOSITE INDICATOR CONSUMPTION EXPENDITURE CORRUPTION COUNTRY CHARACTERISTICS COUNTRY DATA COUNTRY ESTIMATES COUNTRY FIXED EFFECTS CRITICAL IMPORTANCE DATA AVAILABILITY DATA COLLECTION DATA QUALITY DEBT DEMOCRACY DEMOCRATIC DEVELOPMENT DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING ECONOMIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DIMINISHING RETURNS DISCOUNT RATE ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC OUTCOMES ECONOMIC PERFORMANCE ECONOMICS ECONOMICS OF EDUCATION EDUCATIONAL ATTAINMENT EDUCATIONAL INSTITUTIONS EFFECT OF GOVERNANCE ENDOGENOUS VARIABLES EXOGENOUS RATES EXOGENOUS VARIABLES EXPENDITURE EXTERNALITIES FIGHTING CORRUPTION FINANCIAL MANAGEMENT FISCAL POLICY FIXED CAPITAL FUTURE RESEARCH GDP GDP PER CAPITA GOOD GOVERNANCE GOVERNANCE DATA GOVERNANCE DIMENSION GOVERNANCE FAILURES GOVERNANCE INDICATOR GOVERNANCE MEASURE GOVERNANCE MEASURES GOVERNANCE QUALITY GOVERNMENT CONSUMPTION GOVERNMENT EFFECTIVENESS GOVERNMENT EXPENDITURES GOVERNMENT SPENDING GROSS DEBT GROSS FIXED CAPITAL FORMATION GROWTH RATE GROWTH RATES HUMAN CAPITAL HUMAN CAPITAL INVESTMENTS HUMAN CAPITAL STOCK HUMAN DEVELOPMENT HUMAN DEVELOPMENT NETWORK INCOME GROUPS INCOME GROWTH INCOME LEVEL INCOME LEVELS INFLATION INFORMAL PAYMENTS INSTITUTIONAL CHANGE INSTITUTIONAL ENVIRONMENT INSTITUTIONAL ENVIRONMENTS INSTITUTIONAL FRAMEWORK INSTITUTIONAL MECHANISM INSTITUTIONAL QUALITY INSTITUTIONAL REFORM INSTITUTIONAL STRUCTURE INSTRUMENT INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT INVENTORIES INVESTING INVESTMENT MANAGEMENT LABOR MARKET LABOR-FORCE LESS DEVELOPED COUNTRIES MACROECONOMIC DATA MACROECONOMIC LEVEL MACROECONOMIC MANAGEMENT MACROECONOMIC POLICY MARGINAL PRODUCTIVITY MEASUREMENT ERROR MISMANAGEMENT MONETARY ECONOMICS NATIONAL INCOME NATIONS NET EXPORTS NPL OUTPUT PER CAPITA INCOME PER CAPITA INCOMES POLICY IMPLICATIONS POLITICAL ECONOMY POLITICAL PARTICIPATION POLITICAL REGIME POLITICAL STABILITY POSITIVE EFFECTS PRIMARY SCHOOL PRIVATE ENTITIES PRODUCTION FUNCTION PRODUCTION FUNCTIONS PROPERTY RIGHTS PUBLIC EXPENDITURE PUBLIC FINANCE PUBLIC FINANCES PUBLIC INVESTMENT PUBLIC SECTOR PUBLIC SPENDING RATES OF RETURN REGIONAL DUMMIES REGULATORY QUALITY REVERSE CAUSALITY RULE OF LAW SERVICE DELIVERY SOCIAL CAPITAL SOCIAL SECURITY STATE INCOME STOCK DATA STRUCTURAL CHANGE TECHNOLOGICAL CHANGE TECHNOLOGY TRANSFER TRANSPARENCY WAGE RATES WEALTH WORLD DEVELOPMENT INDICATORS WORLDWIDE GOVERNANCE INDICATORS YOUTH Adams-Kane, Jonathon Lim, Jamus Jerome Institutional Quality Mediates the Effect of Human Capital on Economic Performance |
| geographic_facet |
The World Region The World Region World |
| relation |
Policy Research Working Paper ; No. 6792 |
| description |
This paper considers the relationship
between institutional quality, educational outcomes, and
economic performance. More specifically, it seeks to
establish the linkages by which government effectiveness
affects per capita income, via its mediating effect on human
capital formation. The empirical approach adopts a two-stage
strategy that estimates national-level educational
production functions that include government effectiveness
as a covariate, and then uses these estimates as instruments
for human capital in cross-country regressions of per capita
income. The results identify a significant and positive
effect of human capital on per capita income levels, and
partially resolves the inconsistency between macro- and
micro-level studies of the effect of human capital on
income. The results also remain robust to alternative
specifications, extension to a panel setting, subsamples of
the data, and fully endogenous institutions. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Adams-Kane, Jonathon Lim, Jamus Jerome |
| author_facet |
Adams-Kane, Jonathon Lim, Jamus Jerome |
| author_sort |
Adams-Kane, Jonathon |
| title |
Institutional Quality Mediates
the Effect of Human Capital on Economic Performance |
| title_short |
Institutional Quality Mediates
the Effect of Human Capital on Economic Performance |
| title_full |
Institutional Quality Mediates
the Effect of Human Capital on Economic Performance |
| title_fullStr |
Institutional Quality Mediates
the Effect of Human Capital on Economic Performance |
| title_full_unstemmed |
Institutional Quality Mediates
the Effect of Human Capital on Economic Performance |
| title_sort |
institutional quality mediates
the effect of human capital on economic performance |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2014/02/19154782/institutional-quality-mediates-effect-human-capital-economic-performance http://hdl.handle.net/10986/18361 |
| _version_ |
1764441562690879488 |
| spelling |
okr-10986-183612021-04-23T14:03:46Z Institutional Quality Mediates the Effect of Human Capital on Economic Performance Adams-Kane, Jonathon Lim, Jamus Jerome ACCOUNTABILITY ACCOUNTING AUTHORITY BENCHMARK BINDING CONSTRAINT BOND BUDGET MANAGEMENT BUREAUCRACY CAPITAL ACCUMULATION CAPITAL INVESTMENTS CAPITAL SHARE CAPITAL STOCK CAUSAL IMPACT CHECKS COMPARATIVE ECONOMICS COMPETITIVENESS COMPOSITE INDICATOR CONSUMPTION EXPENDITURE CORRUPTION COUNTRY CHARACTERISTICS COUNTRY DATA COUNTRY ESTIMATES COUNTRY FIXED EFFECTS CRITICAL IMPORTANCE DATA AVAILABILITY DATA COLLECTION DATA QUALITY DEBT DEMOCRACY DEMOCRATIC DEVELOPMENT DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING ECONOMIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DIMINISHING RETURNS DISCOUNT RATE ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC OUTCOMES ECONOMIC PERFORMANCE ECONOMICS ECONOMICS OF EDUCATION EDUCATIONAL ATTAINMENT EDUCATIONAL INSTITUTIONS EFFECT OF GOVERNANCE ENDOGENOUS VARIABLES EXOGENOUS RATES EXOGENOUS VARIABLES EXPENDITURE EXTERNALITIES FIGHTING CORRUPTION FINANCIAL MANAGEMENT FISCAL POLICY FIXED CAPITAL FUTURE RESEARCH GDP GDP PER CAPITA GOOD GOVERNANCE GOVERNANCE DATA GOVERNANCE DIMENSION GOVERNANCE FAILURES GOVERNANCE INDICATOR GOVERNANCE MEASURE GOVERNANCE MEASURES GOVERNANCE QUALITY GOVERNMENT CONSUMPTION GOVERNMENT EFFECTIVENESS GOVERNMENT EXPENDITURES GOVERNMENT SPENDING GROSS DEBT GROSS FIXED CAPITAL FORMATION GROWTH RATE GROWTH RATES HUMAN CAPITAL HUMAN CAPITAL INVESTMENTS HUMAN CAPITAL STOCK HUMAN DEVELOPMENT HUMAN DEVELOPMENT NETWORK INCOME GROUPS INCOME GROWTH INCOME LEVEL INCOME LEVELS INFLATION INFORMAL PAYMENTS INSTITUTIONAL CHANGE INSTITUTIONAL ENVIRONMENT INSTITUTIONAL ENVIRONMENTS INSTITUTIONAL FRAMEWORK INSTITUTIONAL MECHANISM INSTITUTIONAL QUALITY INSTITUTIONAL REFORM INSTITUTIONAL STRUCTURE INSTRUMENT INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT INVENTORIES INVESTING INVESTMENT MANAGEMENT LABOR MARKET LABOR-FORCE LESS DEVELOPED COUNTRIES MACROECONOMIC DATA MACROECONOMIC LEVEL MACROECONOMIC MANAGEMENT MACROECONOMIC POLICY MARGINAL PRODUCTIVITY MEASUREMENT ERROR MISMANAGEMENT MONETARY ECONOMICS NATIONAL INCOME NATIONS NET EXPORTS NPL OUTPUT PER CAPITA INCOME PER CAPITA INCOMES POLICY IMPLICATIONS POLITICAL ECONOMY POLITICAL PARTICIPATION POLITICAL REGIME POLITICAL STABILITY POSITIVE EFFECTS PRIMARY SCHOOL PRIVATE ENTITIES PRODUCTION FUNCTION PRODUCTION FUNCTIONS PROPERTY RIGHTS PUBLIC EXPENDITURE PUBLIC FINANCE PUBLIC FINANCES PUBLIC INVESTMENT PUBLIC SECTOR PUBLIC SPENDING RATES OF RETURN REGIONAL DUMMIES REGULATORY QUALITY REVERSE CAUSALITY RULE OF LAW SERVICE DELIVERY SOCIAL CAPITAL SOCIAL SECURITY STATE INCOME STOCK DATA STRUCTURAL CHANGE TECHNOLOGICAL CHANGE TECHNOLOGY TRANSFER TRANSPARENCY WAGE RATES WEALTH WORLD DEVELOPMENT INDICATORS WORLDWIDE GOVERNANCE INDICATORS YOUTH This paper considers the relationship between institutional quality, educational outcomes, and economic performance. More specifically, it seeks to establish the linkages by which government effectiveness affects per capita income, via its mediating effect on human capital formation. The empirical approach adopts a two-stage strategy that estimates national-level educational production functions that include government effectiveness as a covariate, and then uses these estimates as instruments for human capital in cross-country regressions of per capita income. The results identify a significant and positive effect of human capital on per capita income levels, and partially resolves the inconsistency between macro- and micro-level studies of the effect of human capital on income. The results also remain robust to alternative specifications, extension to a panel setting, subsamples of the data, and fully endogenous institutions. 2014-05-15T19:13:03Z 2014-05-15T19:13:03Z 2014-02-01 http://documents.worldbank.org/curated/en/2014/02/19154782/institutional-quality-mediates-effect-human-capital-economic-performance http://hdl.handle.net/10986/18361 English Policy Research Working Paper ; No. 6792 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research The World Region The World Region World |