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Unbundled institutions, human capital and growth

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  • Bhattacharyya, Sambit

Abstract

We investigate the partial effects of institutions and human capital on growth. We find that cross-country regressions of the log-level of per capita GDP on instrumented measures of institutions and schooling are uninformative about the relative importance of institutions and human capital in the long run because of multicollinearity problems. Using dynamic panel regressions we show that both institutions and human capital have significant effects on growth. Using Rodrik's [Rodrik, D., 2005. Growth strategies. Handbook of Economic Growth 1 (1), 967-1014] four-way partition of institutions, we also unbundle institutions. We show that strong market creating institutions and market stabilising institutions are growth enhancing. Market regulating institutions matter up to a certain extent and market legitimising institutions does not seem to matter. Journal of Comparative Economics 37 (1) (2009) 106-120.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Comparative Economics.

Volume (Year): 37 (2009)
Issue (Month): 1 (March)
Pages: 106-120

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Handle: RePEc:eee:jcecon:v:37:y:2009:i:1:p:106-120

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Web page: http://www.elsevier.com/locate/inca/622864

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Keywords: Institutions Human capital Growth;

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Citations

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Cited by:
  1. Sambit Bhattacharyya, 2011. "Political Origins of Financial Structure," Economics Series Working Papers WPS/2011-20, University of Oxford, Department of Economics.
  2. Emmanuel Flachaire & Cecilia García-Peòalosa & Maty Konte, 2011. "Political versus Economic Institutions in the Growth Process," CESifo Working Paper Series 3432, CESifo Group Munich.
  3. Bhattacharyya, Sambit & Hodler, Roland, 2014. "Do Natural Resource Revenues Hinder Financial Development? The Role of Political Institutions," World Development, Elsevier, Elsevier, vol. 57(C), pages 101-113.
  4. Bhattacharyya, Sambit, 2012. "Trade liberalization and institutional development," Journal of Policy Modeling, Elsevier, Elsevier, vol. 34(2), pages 253-269.
  5. Krammer, Sorin, 2010. "Do good institutions enhance the effect of technological spillovers on productivity? Comparative evidence from developed and transition economies," MPRA Paper 53985, University Library of Munich, Germany, revised 07 Feb 2014.
  6. Alex Trew, 2009. "Institutions and the Scale Effect," CDMA Working Paper Series, Centre for Dynamic Macroeconomic Analysis 200906, Centre for Dynamic Macroeconomic Analysis, revised 03 Apr 2011.
  7. Shu-Chin Lin & Dong-Hyeon Kim, 2014. "The link between economic growth and growth volatility," Empirical Economics, Springer, Springer, vol. 46(1), pages 43-63, February.
  8. Benos, Nikos & Zotou, Stefania, 2013. "Education and Economic Growth: A Meta-Regression Analysis," MPRA Paper 46143, University Library of Munich, Germany.
  9. Alex Trew, 2012. "Contracting Institutions and Development," Review of Economics and Institutions, Università di Perugia, Università di Perugia, vol. 3(3).
  10. Bhattacharyya, Sambit & Hodler, Roland, 2010. "Natural resources, democracy and corruption," European Economic Review, Elsevier, vol. 54(4), pages 608-621, May.
  11. Jellal, Mohamed & Bouzahzah, Mohamed, 2012. "Gouvernance éducation et croissance économique
    [Governance education and economic growth]
    ," MPRA Paper 38687, University Library of Munich, Germany.
  12. Jeroen Klomp & Jakob Haan, 2013. "Political Regime and Human Capital: A Cross-Country Analysis," Social Indicators Research, Springer, Springer, vol. 111(1), pages 45-73, March.

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