Institutional Effect over Economic Growth: New Evidence for Latin America
AbstractIn lieu of the institutional hypothesis of economic growth, an economic model and an econometric model are proposed to explore how important institutional settings were for economic performance during the first ten years of the new millennium in Latin America. According to instrumental variables models, institutional quality explains 1.13 and 1.09 of income differences for the decade 2000 - 2010, holding formal and informal structural characteristics constant. The highest average income was greater in a factor of 5,6 than the lowest average income so that, giving econometric results, institutional quality accounts for 20% of such income gap. Compared with short term gains, only Argentina, Chile and Uruguay seem to have been implemented changes in technical efficiency during the decade relevant for Total Factor Productivity levels.
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Bibliographic InfoPaper provided by UNIVERSIDAD CATOLICA DE COLOMBIA in its series DOCUMENTOS DE TRABAJO with number 009591.
Date of creation: 25 Apr 2012
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Economic Development; Technological Change; and Growth; Data Envelopment Analysis; and Instrumental Variable Models.;
Find related papers by JEL classification:
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- O43 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
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