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Disease, Institutions and Underdevelopment

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  • Hasan, Lubna

Abstract

What explains poverty of Sub Saharan Africa and South Asia? One view holds the disease environment of these regions as the primary culprit. Others see it as a typical symptom of growth retarding institutions. We test validity of these competing assertions for a cross section of countries. Our results indicate that institutions are the prime determinant of economic performance of countries. Disease does not play a significant role in determining outcomes. On the contrary, we find support for the indirect effect of disease via institutions, as asserted by the 'institutions school'. Interestingly, the 'institutions school' contention about geography having no direct effect on income is also not validated. Our results show that being land locked can pose significant disadvantage for a country. Endowment of hydrocarbon, however, is beneficial for economic outcomes.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 17090.

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Date of creation: 19 Aug 2009
Date of revision: 03 Sep 2009
Handle: RePEc:pra:mprapa:17090

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Keywords: Economic Performance; Institutions; Disease.;

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  1. Carstensen, Kai & Gundlach, Erich, 2006. "The primacy of institutions reconsidered: Direct income effects of malaria prevalence," Munich Reprints in Economics, University of Munich, Department of Economics 19929, University of Munich, Department of Economics.
  2. Hasan, Lubna Hasan, 2006. "Myths and Realities of Long-run Development: A Look at Deeper Determinants," MPRA Paper 2143, University Library of Munich, Germany.
  3. Chris Papageorgiou & Shankha Chakraborty & Fidel Perez-Sebastian, . "Diseases and Development," Departmental Working Papers, Department of Economics, Louisiana State University 2005-12, Department of Economics, Louisiana State University.
  4. Rodrik, Dani & Subramanian, Arvind & Trebbi, Francesco, 2002. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3643, C.E.P.R. Discussion Papers.
  5. Daron Acemoglu & Simon Johnson & James Robinson, 2003. "Disease and Development in Historical Perspective," Journal of the European Economic Association, MIT Press, MIT Press, vol. 1(2-3), pages 397-405, 04/05.
  6. Daron Acemoglu & Simon Johnson, 2006. "Disease and Development: The Effect of Life Expectancy on Economic Growth," NBER Working Papers 12269, National Bureau of Economic Research, Inc.
  7. Acemoglu, Daron & Johnson, Simon & Robinson, James A., 2005. "Institutions as a Fundamental Cause of Long-Run Growth," Handbook of Economic Growth, Elsevier, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 6, pages 385-472 Elsevier.
  8. Daron Acemoglu & Simon Johnson & James A. Robinson, 2000. "The Colonial Origins of Comparative Development: An Empirical Investigation," NBER Working Papers 7771, National Bureau of Economic Research, Inc.
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