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Institutions and economic performance: A meta-regression analysis

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  • Efendic, Adnan
  • Pugh, Geoff
  • Adnett, Nick

Abstract

This paper applies meta-regression analysis to the empirical literature that investigates the effect of institutions on economic performance. Although studies with growth-theoretic foundations do not yield robust evidence for an authentic empirical effect, we find more robust evidence of positive and large institutional effects on output levels. The partial correlations between institutional and economic performance variables are also influenced by model specification choices and, in particular, (non)treatment of the potential endogeneity of institutions. A corollary of such pronounced heterogeneities is that we cannot report a representative estimated effect size, although the evidence overwhelmingly suggests a positive influence of institutional quality on economic outcomes.

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Bibliographic Info

Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 27 (2011)
Issue (Month): 3 (September)
Pages: 586-599

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Handle: RePEc:eee:poleco:v:27:y:2011:i:3:p:586-599

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Web page: http://www.elsevier.com/locate/inca/505544

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Keywords: Institutions Economic performance Meta-regression analysis;

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Citations

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Cited by:
  1. Castro Campos M. de & Kool C.J.M. & Muysken J., 2013. "Cross-country private saving heterogeneity and culture," Research Memorandum 013, Maastricht University, Graduate School of Business and Economics (GSBE).
  2. Tomas Havranek & Roman Horvath & Petra Valickova, 2013. "Financial Development and Economic Growth: A Meta-Analysis," Working Papers 2013/05, Czech National Bank, Research Department.
  3. Rosenberg, Jacob & Weiss, Avi, 2012. "Property rights and institutions in biblical society: The purchase of the Cave of the Patriarchs," European Journal of Political Economy, Elsevier, vol. 28(3), pages 279-285.
  4. Campos, Nauro F. & Horváth, Roman, 2012. "Reform redux: Measurement, determinants and growth implications," European Journal of Political Economy, Elsevier, vol. 28(2), pages 227-237.
  5. Law, Siong Hook & Lim, Thong Cheen & Ismail, Normaz Wana, 2013. "Institutions and economic development: A Granger causality analysis of panel data evidence," Economic Systems, Elsevier, vol. 37(4), pages 610-624.
  6. Blanco, Luisa R., 2013. "The impact of crime on trust in institutions in Mexico," European Journal of Political Economy, Elsevier, vol. 32(C), pages 38-55.
  7. Tamilina, Larysa & Tamilina, Natalya, 2012. "When formal institutions fail in fostering economic growth: the case of post-communist countries," MPRA Paper 48352, University Library of Munich, Germany, revised 01 Nov 2012.
  8. Driffield, Nigel L. & Mickiewicz, Tomasz & Temouri, Yama, 2013. "Institutional reforms, productivity and profitability: From rents to competition?," Journal of Comparative Economics, Elsevier, vol. 41(2), pages 583-600.
  9. Rode, Martin & Gwartney, James D., 2012. "Does democratization facilitate economic liberalization?," European Journal of Political Economy, Elsevier, vol. 28(4), pages 607-619.
  10. Goel, Rajeev K. & Nelson, Michael A. & Naretta, Michael A., 2012. "The internet as an indicator of corruption awareness," European Journal of Political Economy, Elsevier, vol. 28(1), pages 64-75.
  11. Benos, Nikos & Zotou, Stefania, 2013. "Education and Economic Growth: A Meta-Regression Analysis," MPRA Paper 46143, University Library of Munich, Germany.

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