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Institutions and Development:A View from Below

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Author Info
Rohini Pande () (Economic Growth Center, Yale University)
Christopher Udry (Economic Growth Center, Yale University)

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Abstract

In this paper we argue the case for greater exploitation of synergies between research on specific institutions based on micro-data and the big questions posed by the institutions and growth literature. To date, the macroeconomic literature on institutions and growth has largely relied on cross-country regression evidence. This has provided compelling evidence for a causal link between a cluster of ‘good’ institutions and more rapid long run growth. However, an inability to disentangle the effects of specific institutional channels on growth or to understand the impact of institutional change on growth will limit further progress using a cross-country empirical strategy. We suggest two research programs based on micro-data that have significant potential. The first uses policy-induced variation in specific institutions within countries to understand how these institutions influence economic activity. The second exploits the fact that the incentives provided by a given institutional context often vary with individuals’ economic and political status. This can help us better understand how institutional change arises in response to changing economic and demographic pressures.

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Paper provided by Economic Growth Center, Yale University in its series Working Papers with number 928.

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Length: 59 pages
Date of creation: Nov 2005
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Handle: RePEc:egc:wpaper:928

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Related research
Keywords: Institutions; Growth; Cross-Country Regressions;

Find related papers by JEL classification:
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Pande, Rohini, 2007. "Understanding Political Corruption in Low Income Countries," Working Paper Series rwp07-020, Harvard University, John F. Kennedy School of Government. [Downloadable!]
  2. Gustavo J Bobonis, 2008. "Endowments, Coercion, and the Historical Containment of Education," Working Papers tecipa-335, University of Toronto, Department of Economics. [Downloadable!]
  3. Stephane Straub, 2008. "Infrastructure and Growth in Developing Countries: Recent Advances and Research Challenges," ESE Discussion Papers 179, Edinburgh School of Economics, University of Edinburgh. [Downloadable!]
    Other versions:
  4. Haaparanta, Pertti & Virta, Heli, 2006. "Decomposing Growth: Do Low-Income and HIPCs Differ from High-Income Countries? Growth, Technological Catch-up, Technological Change and Human and Physical Capital Deepening," Working Papers RP2006/26, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  5. Pande, Rohini, 2007. "Understanding Political Corruption in Low Income Countries," CEPR Discussion Papers 6273, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  6. Federica Maiorano & Jon Stern, 2007. "Institutions and Infrastructure Investment in Low and Middle-Income Countries: The Case of Mobile Communications," City University Economics Discussion Papers 07/06, Department of Economics, City University, London. [Downloadable!]
  7. repec:dia:wpaper:dt200801 is not listed on IDEAS
  8. Alan Martina, 2009. "On the Constrained Contribution of Advances in Medical Knowledge to the Economic Growth of Developing Countries," ANUCBE School of Economics Working Papers 2009-504, Australian National University, College of Business and Economics, School of Economics. [Downloadable!]
  9. Bruhn, Miriam & Gallego, Francisco A., 2008. "Good, bad, and ugly colonial activities : studying development across the Americas," Policy Research Working Paper Series 4641, The World Bank. [Downloadable!]
    Other versions:
  10. Gareth Austin, 2008. "The 'reversal of fortune' thesis and the compression of history: Perspectives from African and comparative economic history," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(8), pages 996-1027. [Downloadable!]
  11. Beck, Thorsten, 2008. "The econometrics of finance and growth," Policy Research Working Paper Series 4608, The World Bank. [Downloadable!]
  12. Joana Naritomi & Rodrigo R. Soares & Juliano J. Assunção, 2007. "Rent Seeking and the Unveiling of 'De Facto' Institutions: Development and Colonial Heritage within Brazil," NBER Working Papers 13545, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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