What Fundamentally Drives Growth? Revisiting the Institutions and Economic Performance Debate

The recent empirical growth literature has proposed three underlying fundamental determinants of economic growth, namely, physical geography, economic integration and institutional quality. This paper unpacks the final determinant into both political-economic institutions as well as the primarily po...

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Main Authors:	Decker, Jessica Henson, Lim, Jamus Jerome
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Institutions and Growth O430
Online Access:	http://hdl.handle.net/10986/5605

id	okr-10986-5605
recordtype	oai_dc
spelling	okr-10986-56052021-04-23T14:02:23Z What Fundamentally Drives Growth? Revisiting the Institutions and Economic Performance Debate Decker, Jessica Henson Lim, Jamus Jerome Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Institutions and Growth O430 The recent empirical growth literature has proposed three underlying fundamental determinants of economic growth, namely, physical geography, economic integration and institutional quality. This paper unpacks the final determinant into both political-economic institutions as well as the primarily political institution of democratic development. Using both cross-sectional and panel datasets, we show that, properly instrumented, there is no evidence that democracies grow faster or slower than non-democracies. This result is in contrast to much of the more recent literature, which tends to find a weakly positive relationship. Political- economic institutions, however, remain positive and significant determinants of economic growth, which corroborates much of the empirical evidence in the existing literature. 2012-03-30T07:33:38Z 2012-03-30T07:33:38Z 2008 Journal Article Journal of International Development 09541748 http://hdl.handle.net/10986/5605 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Institutions and Growth O430
spellingShingle	Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Institutions and Growth O430 Decker, Jessica Henson Lim, Jamus Jerome What Fundamentally Drives Growth? Revisiting the Institutions and Economic Performance Debate
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	The recent empirical growth literature has proposed three underlying fundamental determinants of economic growth, namely, physical geography, economic integration and institutional quality. This paper unpacks the final determinant into both political-economic institutions as well as the primarily political institution of democratic development. Using both cross-sectional and panel datasets, we show that, properly instrumented, there is no evidence that democracies grow faster or slower than non-democracies. This result is in contrast to much of the more recent literature, which tends to find a weakly positive relationship. Political- economic institutions, however, remain positive and significant determinants of economic growth, which corroborates much of the empirical evidence in the existing literature.
format	Journal Article
author	Decker, Jessica Henson Lim, Jamus Jerome
author_facet	Decker, Jessica Henson Lim, Jamus Jerome
author_sort	Decker, Jessica Henson
title	What Fundamentally Drives Growth? Revisiting the Institutions and Economic Performance Debate
title_short	What Fundamentally Drives Growth? Revisiting the Institutions and Economic Performance Debate
title_full	What Fundamentally Drives Growth? Revisiting the Institutions and Economic Performance Debate
title_fullStr	What Fundamentally Drives Growth? Revisiting the Institutions and Economic Performance Debate
title_full_unstemmed	What Fundamentally Drives Growth? Revisiting the Institutions and Economic Performance Debate
title_sort	what fundamentally drives growth? revisiting the institutions and economic performance debate
publishDate	2012
url	http://hdl.handle.net/10986/5605
_version_	1764395645936861184

What Fundamentally Drives Growth? Revisiting the Institutions and Economic Performance Debate

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