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The effect of institutional quality on national wealth: An examination using multiple imputation method

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  • Yang, Jue
  • Managi, Shunsuke
  • Sato, Masayuki

Abstract

Various indicators have been developed to assess the sustainability of countries. However, whether it is possible to include institutions as an element of the sustainability index remains theoretically and practically unclear. One of the main challenges is the substantial missing data problem. Recent studies has shed light on means of improving data collection and constructing better indicators for the quality of institutions and their use in sustainability theory. However, although a variety of imputation methods have been developed in this field, the special nature of institutions and the time trend effect make it difficult to develop an appropriate selection strategy. This study addresses this problem by including theoretically considerable variables in a multiple imputation framework. A panel dataset is constructed that covers approximately 190 countries for the period 1980-2010. Based on this complete imputed dataset, we investigate the effects of institutions on the change in comprehensive wealth, which is the adjusted net savings, using the instrument variable method. We also suggest a strategy for including institutional indicators in post-2015 sustainability index design.

Suggested Citation

  • Yang, Jue & Managi, Shunsuke & Sato, Masayuki, 2013. "The effect of institutional quality on national wealth: An examination using multiple imputation method," MPRA Paper 55436, University Library of Munich, Germany, revised 08 Apr 2014.
    • Handle: RePEc:pra:mprapa:55436
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    Cited by:

    1. Fujii, Hidemichi & Managi, Shunsuke, 2015. "Trends in corporate environmental management studies and databases," MPRA Paper 66531, University Library of Munich, Germany.
    2. Yann Algan & Pierre Cahuc, 2010. "Inherited Trust and Growth," American Economic Review, American Economic Association, vol. 100(5), pages 2060-2092, December.
    3. repec:hal:spmain:info:hdl:2441/432sbils8u9t7qa99cii5psht1 is not listed on IDEAS
    4. George E. Halkos & George J. Papageorgiou, 2016. "Environmental amenities as a renewable resource: management and conflicts," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 18(3), pages 303-325, July.
    5. Galinato, Gregmar I. & Chouinard, Hayley H., 2018. "Strategic interaction and institutional quality determinants of environmental regulations," Resource and Energy Economics, Elsevier, vol. 53(C), pages 114-132.
    6. Kenta Tanaka & Shunsuke Managi, 2016. "Impact Of A Disaster On Land Price: Evidence From Fukushima Nuclear Power Plant Accident," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(01), pages 1-15, March.
    7. Yann Algan & Pierre Cahuc, 2010. "Inherited Trust and Growth," American Economic Review, American Economic Association, vol. 100(5), pages 2060-2092, December.
    8. Brännlund Runar & Karimu Amin & Söderholm Patrik, 2017. "Convergence in carbon dioxide emissions and the role of growth and institutions: a parametric and non-parametric analysis," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 19(2), pages 359-390, April.
    9. Kumar, Surender & Managi, Shunsuke, 2016. "Carbon-sensitive productivity, climate and institutions," Environment and Development Economics, Cambridge University Press, vol. 21(1), pages 109-133, February.
    10. Shigemi Kagawa & Seiji Hashimoto & Shunsuke Managi, 2015. "Special issue: studies on industrial ecology," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 17(3), pages 361-368, July.
    11. George Halkos & Shunsuke Managi & Nickolaos Tzeremes, 2015. "The effect of natural and man-made disasters on countries’ production efficiency," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 4(1), pages 1-13, December.

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    More about this item

    Keywords

    Multiple imputation; adjusted net savings; institutional quality;
    All these keywords.

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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