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do more transparent government govern better?

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Author Info
Islam, Roumeen
Abstract

The author explores the link between information flows and governance or institutional quality. Economic theory expounds on the importance of information on economic outcomes either through its direct effect on prices and quantities or through its effect on other factors such as institutions and the quality of governance. She shows that countries with better information flows also govern better. Two kinds of indicators are used to assess better information flows. One index is based on the existence of freedom of information laws. A second index called the"transparency"index measures the frequency with which economic data are published in countries around the world. Empirical analysis shows that countries which have better information flows as measured by both indicators have better quality governance.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3077.

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Date of creation: 30 Jun 2003
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Handle: RePEc:wbk:wbrwps:3077

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Keywords: Environmental Economics&Policies; ICT Policy and Strategies; Public Health Promotion; Decentralization; Educational Technology and Distance Education; ICT Policy and Strategies; Environmental Economics&Policies; Health Monitoring&Evaluation; Educational Technology and Distance Education; Health Economics&Finance;

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  3. Dyck, Alexander & Zingales, Luigi, 2002. "The Corporate Governance Role of the Media," CEPR Discussion Papers 3630, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  4. Stiglitz, J.E., 1988. "Sharecropping," Papers 11, Princeton, Woodrow Wilson School - Discussion Paper.
  5. Chowdhry, Bhagwan & Goyal, Amit, 2000. "Understanding the financial crisis in Asia," Pacific-Basin Finance Journal, Elsevier, vol. 8(2), pages 135-152, May. [Downloadable!] (restricted)
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  8. Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Governance matters," Policy Research Working Paper Series 2196, The World Bank. [Downloadable!]
  9. Pagano, Marco & Jappelli, Tullio, 1993. " Information Sharing in Credit Markets," Journal of Finance, American Finance Association, vol. 48(5), pages 1693-1718, December. [Downloadable!] (restricted)
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  10. Besley, Timothy J. & Burgess, Robin, 2001. "The Political Economy of Government Responsiveness: Theory and Evidence from India," CEPR Discussion Papers 2721, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  11. Stiglitz, Joseph E, 1987. "Some Theoretical Aspects of Agricultural Policies," World Bank Research Observer, Oxford University Press, vol. 2(1), pages 43-60, January.
  12. Akerlof, George A, 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 488-500, August. [Downloadable!] (restricted)
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  1. Nelson Ramírez-Rondán & Saki Bigio, 2006. "Corruption and Development Indicators: An Empirical Review," Working Papers 2006-007, Banco Central de Reserva del Perú. [Downloadable!]
  2. Franklin Steves & Alan Rousso, 2004. "Anti-corruption programmes in post-communist transition countries and changes in the business environment, 1999-2002," Law and Economics 0401004, EconWPA. [Downloadable!]
  3. Dixit, Avinash, 2006. "Evaluating recipes for development success," Policy Research Working Paper Series 3859, The World Bank. [Downloadable!]
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