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Quality of Institutions: Does Intelligence Matter?

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  • Isaac Kalonda-Kanyama
  • Oasis Kodila-Tedika

Abstract

This paper analyzes the eect of the average level of intelligence on different measures of the quality of institutions, using a 2006 cross-sectional sample of 113 countries. The results show that average IQ positively affects all the measures of institutional quality considered in our study, namely government efficiency, regulatory quality, rule of law, political stability and voice and accountability. The positive effect of intelligence is robust to controlling for other determinants of institutional quality. It follows that countries with higher IQ levels enjoy institutions of better quality than countries with low levels of IQ. This finding should by no means be interpreted as evidence that there exist some countries with more intelligent populations that build better institutions and some other countries with less intelligent populations that build poor institutions. What our finding points out to is the fact that a country's level of the understanding of the rules and principles that govern the institutions and the degree of cooperation of its human capital withinnational institutions is important for institutional quality.

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Bibliographic Info

Paper provided by Economic Research Southern Africa in its series Working Papers with number 308.

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Length: 20 pages
Date of creation: 2012
Date of revision:
Handle: RePEc:rza:wpaper:308

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Keywords: governance; institutions; intelligence;

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References

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  1. Rafael LaPorta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert Vishny, . "The Quality of Government," Working Paper 19452, Harvard University OpenScholar.
  2. Garett Jones & W. Joel Schneider, 2005. "Intelligence, Human Capital, and Economic Growth: A Bayesian Averaging of Classical Estimates (BACE) Approach," Development and Comp Systems 0507005, EconWPA.
  3. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
  4. Axel Dreher, 2006. "Does globalization affect growth? Evidence from a new index of globalization," Applied Economics, Taylor & Francis Journals, vol. 38(10), pages 1091-1110.
  5. Jones, Garett, 2011. "National IQ and National Productivity: The Hive Mind Across Asia," Asian Development Review, Asian Development Bank, vol. 28(1), pages 51-71.
  6. Weede, Erich & Kampf, Sebastian, 2002. "The Impact of Intelligence and Institutional Improvements on Economic Growth," Kyklos, Wiley Blackwell, vol. 55(3), pages 361-80.
  7. Potrafke, Niklas, 2012. "Intelligence and corruption," Munich Reprints in Economics 19275, University of Munich, Department of Economics.
  8. Islam, Roumeen & Montenegro, Claudio E., 2002. "What determines the quality of institutions?," Policy Research Working Paper Series 2764, The World Bank.
  9. Garett Jones & W. Joel Schneider, 2010. "Iq In The Production Function: Evidence From Immigrant Earnings," Economic Inquiry, Western Economic Association International, vol. 48(3), pages 743-755, 07.
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Citations

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Cited by:
  1. Oasis Kodila-Tedika & Remy Bolito-Losembe, 2014. "Poverty and Intelligence: Evidence using Quantile Regression," Economic Research Guardian, Weissberg Publishing, vol. 4(1), pages 25-32, June.
  2. Kodila-Tedika, Oasis & Tcheta-Bampa, Albert, 2014. "Cold War and Institutional Quality: Some Empirical Evidence," MPRA Paper 53965, University Library of Munich, Germany.
  3. Kodila-Tedika, Oasis, 2013. "Forget your gods: African evidence on the relation between state capacity and cognitive ability of leading politicians," MPRA Paper 46449, University Library of Munich, Germany.
  4. Kodila-Tedika, Oasis, 2014. "Education, paludisme et moustiquaires imprégnées d'insecticide en Afrique sub-saharienne," MPRA Paper 55913, University Library of Munich, Germany.
  5. Oasis, Kodila-Tedika, 2013. "Do Nations Combine O-Rings with Cobb-Douglas? Evidence from agriculture, equipment production, and the informal sector," MPRA Paper 51347, University Library of Munich, Germany.

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