Institution And Development Revisited: A Nonparametric Approach
AbstractThe paper uses nonparametric methodology to examine the role of institutions in understanding differential levels of development across countries. By using the Li-Racine (2004) generalized kernel estimation methodology, our paper allows a deeper look into the impact of institutions on development. The analysis is carried out for a set of 102 countries over 1980 to 2004. Similar to parametric results established in the literature, the nonparametric analysis lends further support to the view that institutions matter in the development of countries in the context of economic policies and geographic factors. There is minimal evidence to suggest that institutions have a negative impact on development. Our results further indicate (a) parametric estimates suffer from misspecification bias and (b) the impact of institutional quality on development quality is heterogeneous across countries and time periods.
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Bibliographic InfoPaper provided by United Nations Conference on Trade and Development in its series UNCTAD Blue Series Papers with number 42.
Date of creation: 2010
Date of revision:
Other versions of this item:
- Sudip Ranjan Basu, 2008. "Institution and Development Revisited:A Nonparametric Approach," IHEID Working Papers 05-2008, Economics Section, The Graduate Institute of International Studies, revised Mar 2008.
- C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
- P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
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