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Measurement and evolution of state capacity: exploring a lesser known aspect of governance

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  • Antonio Savoia
  • Kunal Sen

Abstract

This paper offers an overview of the strengths and limitations in current empirical research on the measurement of state capacity. The paper also surveys the fast emerging literature on the determinants and effects of state capacity. We argue that existing measures on governance quality used in cross-national research can be usefully exploited to capture different aspects of state capacity. We utilise them to provide stylised facts on its evolution, and that post the end of the Cold War in the early 1990s, developing economies have experienced improvements in legal, administrative and bureaucratic capacity, but the gap with advanced economies is still wide. We note that empirical analysis is constrained by the short temporal coverage of available measures. Future research should also address this, as well as providing a systematic econometric assessment of the determinants of capacity and of its effects on development outcomes, such as health and education, which have not received sufficient scrutiny.

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  • Antonio Savoia & Kunal Sen, 2012. "Measurement and evolution of state capacity: exploring a lesser known aspect of governance," Global Development Institute Working Paper Series esid-010-12, GDI, The University of Manchester.
    • Handle: RePEc:bwp:bwppap:esid-010-12
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    1. Andrew Williams & Abu Siddique, 2008. "The use (and abuse) of governance indicators in economics: a review," Economics of Governance, Springer, vol. 9(2), pages 131-175, May.
    2. Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2004. "Do Institutions Cause Growth?," Journal of Economic Growth, Springer, vol. 9(3), pages 271-303, September.
    3. Stanley L. Engerman & Kenneth Lee Sokoloff, 2002. "Factor Endowments, Inequality, and Paths of Development Among New World Economies," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2002), pages 41-110, August.
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    Cited by:

    1. Lawrence Sáez, 2013. "Methods in governance research: a review of research approaches," Global Development Institute Working Paper Series esid-017-13, GDI, The University of Manchester.
    2. Sen, Kunal, 2013. "Governance and Development Outcomes in Asia," ADB Economics Working Paper Series 384, Asian Development Bank.
    3. David Hulme & Antonio Savoia & Kunal Sen, 2015. "Governance as a Global Development Goal? Setting, Measuring and Monitoring the Post-2015 Development Agenda," Global Policy, London School of Economics and Political Science, vol. 6(2), pages 85-96, May.
    4. Cingolani L, 2013. "The State of State Capacity : a review of concepts, evidence and measures," MERIT Working Papers 2013-053, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Antonio Savoia & Kunal Sen, 2015. "Measurement, Evolution, Determinants, And Consequences Of State Capacity: A Review Of Recent Research," Journal of Economic Surveys, Wiley Blackwell, vol. 29(3), pages 441-458, July.

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