IDEAS home Printed from https://ideas.repec.org/a/bla/presci/v101y2022i3p537-571.html
   My bibliography  Save this article

Spatial heterogeneities, institutions, and income: Evidence for Brazil

Author

Listed:
  • William Y. N. Suzuki
  • Marcio P. Laurini
  • Luciano Nakabashi

Abstract

Political institutions are an essential component to explain income variation. Brazilian municipalities are characterized by a great contrast in the colonization process and its impacts on the current income level and distribution, and other development aspects. This study analyzes the spatial heterogeneity of the relationship between institutional quality and the municipalities' economic development. We use a spatial moving window method applied to weighted regressions—Geographically Weighted Regression (GWR). We find evidence that good institutions increase income and other variables related to economic development. In addition, the institutional quality influence on economic development measures is distinct across the Brazilian regions. Las instituciones políticas son un componente esencial para explicar la variación de los ingresos. Los municipios brasileños se caracterizan por un gran contraste en el proceso de colonización y sus impactos en el nivel y distribución de la renta actuales y en otros aspectos del desarrollo. Este estudio analiza la heterogeneidad espacial de la relación entre la calidad institucional y el desarrollo económico de los municipios. Se utilizó un método de ventana móvil espacial aplicado a regresiones ponderadas como la regresión con ponderación geográfica. Se encontraron pruebas de que las buenas instituciones aumentan los ingresos y otras variables relacionadas con el desarrollo económico. Además, la influencia de la calidad institucional en las medidas de desarrollo económico es distinta en las diferentes regiones brasileñas. 行政機関は所得格差を説明するのに不可欠な要素である。ブラジルの地方自治体では、植民地化のプロセス、現在の所得水準や所得分布、及びその他の発展に関する側面への影響における差異が大きいという特徴がある。本研究では、行政機関の質と自治体の経済発展との関連における空間的不均一性を分析する。空間的な移動窓法を重回帰法に応用した、地理的加重回帰法(Geographically Weighted Regression:GWR)を使用する。優れた行政機関は、経済発展に関連する所得やその他の変数を増加させるというエビデンスが得られた。さらに、行政機関の質が経済開発の政策に与える影響は、ブラジルの地域全体で顕著である。

Suggested Citation

  • William Y. N. Suzuki & Marcio P. Laurini & Luciano Nakabashi, 2022. "Spatial heterogeneities, institutions, and income: Evidence for Brazil," Papers in Regional Science, Wiley Blackwell, vol. 101(3), pages 537-571, June.
  • Handle: RePEc:bla:presci:v:101:y:2022:i:3:p:537-571
    DOI: 10.1111/pirs.12666
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/pirs.12666
    Download Restriction: no

    File URL: https://libkey.io/10.1111/pirs.12666?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Daron Acemoglu & Simon Johnson & James Robinson, 2005. "The Rise of Europe: Atlantic Trade, Institutional Change, and Economic Growth," American Economic Review, American Economic Association, vol. 95(3), pages 546-579, June.
    2. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(1), pages 83-116.
    3. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    4. Ralitza Dimova & Antonio Savoia, 2016. "Institutions: Evolution, Path Dependency, Anachronisms and Impact," Journal of Development Studies, Taylor & Francis Journals, vol. 52(2), pages 161-165, February.
    5. Israt Jahan & Jamie Bologna Pavlik & Ryan Blake Williams, 2020. "Is the devil in the shadow? The effect of institutional quality on income," Review of Development Economics, Wiley Blackwell, vol. 24(4), pages 1463-1483, November.
    6. Naritomi, Joana & Soares, Rodrigo R. & Assunã‡Ãƒo, Juliano J., 2012. "Institutional Development and Colonial Heritage within Brazil," The Journal of Economic History, Cambridge University Press, vol. 72(2), pages 393-422, May.
    7. Nastari, Plinio Mario, 1983. "The role of sugar cane in Brazil's history and economy," ISU General Staff Papers 198301010800009947, Iowa State University, Department of Economics.
    8. Thais W. Niquito & Felipe Garcia Ribeiro & Marcelo Savino Portugal, 2018. "Institutions or human capital: which is more important for economic performance? Evidence from Brazil," Economics Bulletin, AccessEcon, vol. 38(2), pages 1069-1076.
    9. Stephen Knack & Philip Keefer, 1995. "Institutions And Economic Performance: Cross‐Country Tests Using Alternative Institutional Measures," Economics and Politics, Wiley Blackwell, vol. 7(3), pages 207-227, November.
    10. Luciano Nakabashi & Ana Elisa Gonçalves Pereira & Adolfo Sachsida, 2013. "Institutions and growth: a developing country case study," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 40(5), pages 614-634, October.
    11. Jamie Bologna & Amanda Ross, 2015. "Corruption and entrepreneurship: evidence from Brazilian municipalities," Public Choice, Springer, vol. 165(1), pages 59-77, October.
    12. Erik Jonasson, 2011. "Informal Employment and the Role of Regional Governance," Review of Development Economics, Wiley Blackwell, vol. 15(3), pages 429-441, August.
    13. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    14. Jose Antonio Alonso, 2011. "Colonisation, Institutions and Development: New Evidence," Journal of Development Studies, Taylor & Francis Journals, vol. 47(7), pages 937-958.
    15. Knack, Stephen & Keefer, Philip, 1995. "Institutions and Economic Performance: Cross-Country Tests Using Alternative Institutional Indicators," MPRA Paper 23118, University Library of Munich, Germany.
    16. Kenneth L. Sokoloff & Stanley L. Engerman, 2000. "Institutions, Factor Endowments, and Paths of Development in the New World," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 217-232, Summer.
    17. Rohini Pande & Christopher Udry, 2005. "Institutions and Development:A View from Below," Working Papers 928, Economic Growth Center, Yale University.
    18. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 681-712.
    19. Edinaldo Tebaldi & Ramesh Mohan, 2010. "Institutions and Poverty," Journal of Development Studies, Taylor & Francis Journals, vol. 46(6), pages 1047-1066.
    20. Hugo Carcanholo Iasco Pereira & João P Romero & Victor Medeiros, 2021. "Kaldor–Verdoorn’s law and institutions: evidence from Brazilian municipalities," Cambridge Journal of Economics, Oxford University Press, vol. 45(3), pages 511-536.
    21. Jamie Bologna & Amanda Ross, 2015. "Corruption and Entrepreneurship: Evidence from a Random Audit Program," Working Papers 15-05, Department of Economics, West Virginia University.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Matthieu Charpe, 2023. "Convergence heterogeneity at the local level in sub‐Saharan Africa," Papers in Regional Science, Wiley Blackwell, vol. 102(2), pages 273-305, April.
    2. Luciano Nakabashi & Ana Elisa Pereira, 2023. "Factors of production, productivity, institutions, and development: Evidence from Brazil," Review of Development Economics, Wiley Blackwell, vol. 27(2), pages 1034-1055, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luciano Nakabashi & Ana Elisa Pereira, 2023. "Factors of production, productivity, institutions, and development: Evidence from Brazil," Review of Development Economics, Wiley Blackwell, vol. 27(2), pages 1034-1055, May.
    2. Thorsten Beck & Luc Laeven, 2006. "Institution building and growth in transition economies," Journal of Economic Growth, Springer, vol. 11(2), pages 157-186, June.
    3. David Castells-Quintana & Maria del Pilar Lopez-Uribe & Tom McDermott, 2015. "Climate change and the geographical and institutional drivers of economic development," GRI Working Papers 198, Grantham Research Institute on Climate Change and the Environment.
    4. Nobuhiro Mizuno & Katsuyuki Naito & Ryosuke Okazawa, 2017. "Inequality, extractive institutions, and growth in nondemocratic regimes," Public Choice, Springer, vol. 170(1), pages 115-142, January.
    5. Lopez-Uribe, Maria del Pilar & Castells-Quintana, David & McDermott, Thomas K. J., 2017. "Geography, institutions and development: a review ofthe long-run impacts of climate change," LSE Research Online Documents on Economics 65147, London School of Economics and Political Science, LSE Library.
    6. Knack, Steve & Xu, Lixin Colin, 2017. "Unbundling institutions for external finance: Worldwide firm-level evidence," Journal of Corporate Finance, Elsevier, vol. 44(C), pages 215-232.
    7. Du, Julan & Lu, Yi & Tao, Zhigang, 2012. "Institutions and FDI location choice: The role of cultural distances," Journal of Asian Economics, Elsevier, vol. 23(3), pages 210-223.
    8. Natkhov, T. & Polishchuk, L., 2017. "Political Economy of Institutions and Development: The Importance of Being Inclusive. Reflection on "Why Nations Fail" by D. Acemoglu and J. Robinson. Part I. Institutions and Economic Devel," Journal of the New Economic Association, New Economic Association, vol. 34(2), pages 12-38.
    9. Linda Glawe & Helmut Wagner, 2019. "The deep determinants of economic development in China—a provincial perspective," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 24(4), pages 484-514, October.
    10. Christian Bjørnskov & Pierre-Guillaume Méon, 2013. "Is trust the missing root of institutions, education, and development?," Post-Print CEB, ULB -- Universite Libre de Bruxelles, vol. 157(3-4), pages 641-669, December.
    11. Khan, Karim, 2015. "Extractive Institutional Structure and Economic Development: Evidence from Nigeria," MPRA Paper 68559, University Library of Munich, Germany.
    12. Israt Jahan & Jamie Bologna Pavlik & Ryan Blake Williams, 2020. "Is the devil in the shadow? The effect of institutional quality on income," Review of Development Economics, Wiley Blackwell, vol. 24(4), pages 1463-1483, November.
    13. Zhiyong An, 2013. "Private Property Rights, Investment Patterns, and Asset Structure," Economics and Politics, Wiley Blackwell, vol. 25(3), pages 481-495, November.
    14. Ng, Travis & Yu, Linhui, 2014. "Which types of institutions hinder productivity among private manufacturing firms in China?," China Economic Review, Elsevier, vol. 31(C), pages 17-31.
    15. Rok Spruk & Mitja Kovac, 2019. "Transaction costs and economic growth under common legal system: State‐level evidence from Mexico," Economics and Politics, Wiley Blackwell, vol. 31(2), pages 240-292, July.
    16. Vianna, Andre C. & Mollick, Andre V., 2018. "Institutions: Key variable for economic development in Latin America," Journal of Economics and Business, Elsevier, vol. 96(C), pages 42-58.
    17. Ahmet Faruk Aysan & …mer Faruk Baykal & Marie-Ange Véganzonès–Varoudakis, 2011. "The Effects of Convergence in Governance on Capital Accumulation in the Black Sea Economic Cooperation Countries," Chapters, in: Mehmet Ugur & David Sunderland (ed.), Does Economic Governance Matter?, chapter 6, Edward Elgar Publishing.
    18. Ahmet Faruk AYSAN & Mustapha Kamel NABLI & Marie‐Ange VÉGANZONÈS‐VAROUDAKIS, 2007. "Governance Institutions And Private Investment: An Application To The Middle East And North Africa," The Developing Economies, Institute of Developing Economies, vol. 45(3), pages 339-377, September.
    19. Kerekes, Carrie B. & Williamson, Claudia R., 2008. "Unveiling de Soto's mystery: property rights, capital formation, and development," Journal of Institutional Economics, Cambridge University Press, vol. 4(3), pages 299-325, December.
    20. Chakraborty, Adrij, 2017. "Colonial Origins and Comparative Development: Institutions Matter," MPRA Paper 86320, University Library of Munich, Germany, revised Feb 2018.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:presci:v:101:y:2022:i:3:p:537-571. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1056-8190 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.