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The Primacy of Institutions Reconsidered: The Effects of Malaria Prevalence in the Empirics of Development

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Erich Gundlach
Abstract

I reconsider the primacy of institutions over geography as an explanatory factor of cross-country differences in economic performance, which has recently been postulated by Acemoglu et al. (2001) and others. My estimates show that the reported missing direct performance effects of a measure of geography such as malaria prevalence are not robust to alternative specifications and samples. Unbiased estimates of the relative performance effects of institutions and malaria prevalence are difficult to obtain due to a lack of independent instrumental variables. Conditional on a restricted effect of institutions, my estimates suggest that malaria prevalence exhibits a large negative direct impact on economic performance, as postulated by Sachs (2003) and others.

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Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1210.

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Length: 38 pages
Date of creation: May 2004
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Handle: RePEc:kie:kieliw:1210

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Keywords: Economic development institutions malaria prevalence

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Find related papers by JEL classification:
O1 - Economic Development, Technological Change, and Growth - - Economic Development
O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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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. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output per Worker than Others?," NBER Working Papers 6564, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December. [Downloadable!] (restricted)
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  3. Rodrik, Dani & Subramanian, Arvind & Trebbi, Francesco, 2002. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," CEPR Discussion Papers 3643, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  4. Masters, William A & McMillan, Margaret S, 2001. " Climate and Scale in Economic Growth," Journal of Economic Growth, Springer, vol. 6(3), pages 167-86, September. [Downloadable!] (restricted)
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  5. Jeffrey D. Sachs, 2001. "Tropical Underdevelopment," NBER Working Papers 8119, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Author-Name: Jeffrey D. Sachs & John W. McArthur & Guido Schmidt-Traub & Margaret Kruk & Chandrika Bahadur & Michael Faye & Gordon McCord, 2004. "Ending Africa's Poverty Trap," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 35(2004-1), pages 117-240. [Downloadable!]
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  1. Guyslain K. Ngeleza & Raymond J.G.M. Florax & William A. Masters, 2006. "Geographic And Institutional Determinants Of Real Income:A Spatio-Temporal Simultaneous Equation Approach," Working Papers 06-15, Purdue University, College of Agriculture, Department of Agricultural Economics. [Downloadable!]
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