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Institutions and Development in Latin America: A Comparative Analysis

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Listed:
  • Alejandro Portes

    (Princeton University)

  • Lori D. Smith

    (Princeton University)

Abstract

We review the theoretical literature on the concept of institutions and its relationship to national development, propose a definition of the concept, and advance six hypotheses about institutional adequacy and contributions to national development. We then present results of a comparative empirical study of existing institutions in three Latin American countries and examine their organizational similarities and differences. Employing the qualitative comparative method (QCA) proposed by Ragin, we then test the six hypotheses. Results converge in showing the importance of meritocracy, immunity to corruption, absence of islands of power, and proactivity in producing effective institutions. Findings strongly support Evans' theory of developmental apparatuses.

Suggested Citation

  • Alejandro Portes & Lori D. Smith, 2007. "Institutions and Development in Latin America: A Comparative Analysis," Working Papers 1029, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Migration and Development..
    • Handle: RePEc:pri:cmgdev:wp0801.pdf
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    References listed on IDEAS

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    1. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, June.
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    3. Noemi Lujan Ponce, 2008. "El tiempo se acabó: El Servicio Postal Mexicano en la encrucijada de su modernización," Working Papers 1154, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Migration and Development..
    4. Knack, Stephen & Keefer, Philip, 1995. "Institutions and Economic Performance: Cross-Country Tests Using Alternative Institutional Indicators," MPRA Paper 23118, University Library of Munich, Germany.
    5. Rauch, James E, 1995. "Bureaucracy, Infrastructure, and Economic Growth: Evidence from U.S. Cities during the Progressive Era," American Economic Review, American Economic Association, vol. 85(4), pages 968-979, September.
    6. Jeffrey D. Sachs, 2003. "Institutions Don't Rule: Direct Effects of Geography on Per Capita Income," NBER Working Papers 9490, National Bureau of Economic Research, Inc.
    7. Ragin, Charles C., 2000. "Fuzzy-Set Social Science," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226702773, September.
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    More about this item

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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