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Sustained Macroeconomic Reforms, Tepid Growth: A Governance Puzzle in Bolivia?

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Author Info
Daniel Kaufmann (The World Bank)
Massimo Mastruzzi (The World Bank)
Diego Zavaleta (The World Bank)

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Abstract

We are increasingly cognizant of the limits to large cross-country empirical studies in trying to understand in-depth a particular country reality, in ways useful for advice. At the same time, merely relying on a single country account at a particular point in time ignores the historical and comparative cross-country perspective. Worse, an in-depth investigation of a single issue within a country begs the question of whether such particular issue may be fundamental for the country's growth and development relative to other determinants, or not. Further, drawbacks exist from excessive reliance on narrow empirical approaches, or on mere qualitative narrative. Consequently, the approach undertaken here for the case of Bolivia is of an integrated nature, combining the following strands: i) an historical perspective from the twin standpoints of the evolution of the enterprise and government sectors over the past half century; ii) an in-depth review of the literature on explanations of Bolivia's performance; iii) an empirical analysis of the country's enterprise sector performance on the basis of a detailed firm- level survey conducted recently in 80 countries, and, iv) an empirical analysis of Bolivia's public agencies based on a survey of public officials in Bolivia working in over 100 institutions. To provide an additional element of comparability, we also utilize cross-country governance indicators.

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Paper provided by EconWPA in its series Development and Comp Systems with number 0308003.

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Length: 53 pages
Date of creation: 26 Aug 2003
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Handle: RePEc:wpa:wuwpdc:0308003

Note: Type of Document - Acrobat PDF; pages: 53
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Web page: http://129.3.20.41

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Related research
Keywords: Governance corruption indicators firms Bolivia

Find related papers by JEL classification:
K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
O1 - Economic Development, Technological Change, and Growth - - Economic Development
O5 - Economic Development, Technological Change, and Growth - - Economywide Country Studies
D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy
N16 - Economic History - - Macroeconomics and Monetary Economics; Growth and Fluctuations - - - Latin America; Caribbean
P5 - Economic Systems - - Comparative Economic Systems

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Johnson, Simon & Kaufmann, Daniel & Zoido-Lobaton, Pablo, 1998. "Regulatory Discretion and the Unofficial Economy," American Economic Review, American Economic Association, vol. 88(2), pages 387-92, May. [Downloadable!] (restricted)
  2. Sanjeev Gupta, 1998. "Does Corruption Affect Income Inequality and Poverty?," IMF Working Papers 98/76, International Monetary Fund.
  3. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August. [Downloadable!] (restricted)
  4. Simon Johnson & Daniel Kaufman & Andrei Shleifer, 1997. "The Unofficial Economy in Transition," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1997-2), pages 159-240. [Downloadable!]
  5. Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Governance matters," Policy Research Working Paper Series 2196, The World Bank. [Downloadable!]
  6. Francisco Rodriguez & Dani Rodrik, 1999. "Trade Policy and Economic Growth: A Skeptic's Guide to the Cross-national Evidence," Electronic Working Papers 99-003, University of Maryland, Department of Economics. [Downloadable!]
    Other versions:
  7. Johnson, Simon & Kaufmann, Daniel & Zoido-Lobaton, Pablo, 1999. "Corruption, public finances, and the unofficial economy," Policy Research Working Paper Series 2169, The World Bank. [Downloadable!]
  8. Nakamura, Alice & Nakamura, Masao, 1985. "On the performance of tests by Wu and by Hausman for detecting the ordinary least squares bias problem," Journal of Econometrics, Elsevier, vol. 29(3), pages 213-227, September. [Downloadable!] (restricted)
  9. Paul P. Streeten, 1999. "Governance," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(4), pages 355-384. [Downloadable!]
  10. Lui, Francis T, 1985. "An Equilibrium Queuing Model of Bribery," Journal of Political Economy, University of Chicago Press, vol. 93(4), pages 760-81, August. [Downloadable!] (restricted)
  11. Bai, Chong-en & Wei, Shang-Jin, 2001. "The quality of bureaucracy and capital account policies," Policy Research Working Paper Series 2575, The World Bank. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Daniel Kaufmann & Frannie Leautier & Massimo Mastruzzi, 2004. "Governance and the City: An Empirical Exploration into Global Determinants of Urban Performance," Urban/Regional 0405004, EconWPA. [Downloadable!]
    Other versions:
  2. William Easterly, 2002. "The cartel of good intentions: the problem of bureaucracy in foreign aid," Journal of Policy Reform, Taylor and Francis Journals, vol. 5(4), pages 223-250, December. [Downloadable!] (restricted)
  3. Lykke E. Andersen & Alice Brooks & Alejandro F. Mercado, 2004. "Macroeconomic Policies to Increase Social Mobility and Growth in Bolivia," Development Research Working Paper Series 02/2004, Institute for Advanced Development Studies. [Downloadable!]
  4. Stephan Klasen, 2006. "Macroeconomic Policy and Pro-Poor Growth in Bolivia," Ibero America Institute for Econ. Research (IAI) Discussion Papers 143, Ibero-America Institute for Economic Research. [Downloadable!]
  5. Stephan Klasen & Melanie Grosse & Rainer Thiele & Jann Lay & Julius Spatz & Manfred Wiebelt, 2004. "Operationalizing Pro-Poor Growth - Country Case Study: Bolivia," Ibero America Institute for Econ. Research (IAI) Discussion Papers 101, Ibero-America Institute for Economic Research. [Downloadable!]
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