Siba, Eyerusalem G. () (Department of Economics, School of Business, Economics and Law, Göteborg University)
Abstract
In this study, a number of factors have been considered as potential determinants of institutional quality in Sub- Saharan African countries. The empirical analysis has shown that historical factors such as state legitimacy determine the quality of current institutions in the region. Foreign aid dependence is found to erode quality of governance as measured by rule of law. Variability of aid is found to counterbalance the destructive nature of high level of aid dependence. However, the last result is not retained in the robust regression analysis performed. Countries with strong political constraints on the ruling elites, proxied by checks and balances between executive and legislative branches of governments, and press freedom, are found to have better quality of institutions. Large countries and those closer to equator are disadvantaged in their success of building better quality institutions. Unlike the popular discussions, ethnic fractionalization and identity of last coloniser do not explain variations in institutional quality in the region. The paper also devotes a section for a case study of Ethiopian institutional development to complement the cross country analysis by adding cultural, historical and political specificities.
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Publisher Info
Paper provided by Göteborg University, Department of Economics in its series Working Papers in Economics with number
310.
Length: 32 pages Date of creation: 19 Jun 2008 Date of revision: Handle: RePEc:hhs:gunwpe:0310
Contact details of provider: Postal: Department of Economics, School of Business, Economics and Law, Göteborg University Box 640, SE 405 30 GÖTEBORG, Sweden Phone: 031-773 10 00 Web page: http://www.handels.gu.se/econ/ More information through EDIRC
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Find related papers by JEL classification: F35 - International Economics - - International Finance - - - Foreign Aid N40 - Economic History - - Government, War, Law, and Regulation - - - General, International, or Comparative N47 - Economic History - - Government, War, Law, and Regulation - - - Africa; Oceania P48 - Economic Systems - - Other Economic Systems - - - Other Economic Systems: Political Economy; Legal Institutions;
Property Rights
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