IDEAS home Printed from https://ideas.repec.org/a/eee/jeborg/v81y2012i3p794-801.html

On comprehensive wealth, institutional quality and sustainable development-quantifying the effect of institutional quality on sustainability

Author

Listed:
  • Stoever, Jana

Abstract

This paper shows a significant and causal positive relationship between good institutions and sustainability. While sustainability is measured with the adjusted net saving (ANS) indicator, institutional quality is measured using an average of six dimensions of governance. An instrumental variable is used to account for endogeneity. Rearranging the set-up and running the regression on the net national savings rate lead to results displaying a much smaller and weaker effect. This finding suggests that compared to the saving of physical capital, the saving of non-physical capital is influenced more strongly by institutional quality.

Suggested Citation

  • Stoever, Jana, 2012. "On comprehensive wealth, institutional quality and sustainable development-quantifying the effect of institutional quality on sustainability," Journal of Economic Behavior & Organization, Elsevier, vol. 81(3), pages 794-801.
    • Handle: RePEc:eee:jeborg:v:81:y:2012:i:3:p:794-801
    DOI: 10.1016/j.jebo.2010.12.017
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167268111000254
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jebo.2010.12.017?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2004. "Do Institutions Cause Growth?," Journal of Economic Growth, Springer, vol. 9(3), pages 271-303, September.
    2. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    3. Hamilton, Kirk & Clemens, Michael, 1999. "Genuine Savings Rates in Developing Countries," The World Bank Economic Review, World Bank, vol. 13(2), pages 333-356, May.
    4. 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.
    5. Mr. Arvind Subramanian & Mr. Francesco Trebbi & Mr. Dani Rodrik, 2002. "Institutions Rule: The Primacy of Institutions over Integration and Geography in Economic Development," IMF Working Papers 2002/189, International Monetary Fund.
    6. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2006. "Does Culture Affect Economic Outcomes?," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 23-48, Spring.
    7. Norman Loayza & Klaus Schmidt-Hebbel & Luis Servén, 2000. "What Drives Private Saving Across the World?," The Review of Economics and Statistics, MIT Press, vol. 82(2), pages 165-181, May.
    8. Atkinson, Giles & Hamilton, Kirk, 2003. "Savings, Growth and the Resource Curse Hypothesis," World Development, Elsevier, vol. 31(11), pages 1793-1807, November.
    9. World Bank, 2008. "World Development Indicators 2008," World Bank Publications - Books, The World Bank Group, number 28241, April.
    10. World Bank, 2008. "World Development Indicators 2008," World Bank Publications - Books, The World Bank Group, number 11855, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ana Escalona-Orcao & Diego A. Barrado-Timón & Severino Escolano-Utrilla & Belén Sánchez-Valverde & Maricruz Navarro-Pérez & Mariola Pinillos-García & Luis Antonio Sáez-Pérez, 2020. "Cultural and Creative Ecosystems in Medium-Sized Cities: Evolution in Times of Economic Crisis and Pandemic," Sustainability, MDPI, vol. 13(1), pages 1-24, December.
    2. Liviu Moldovan, 2015. "Sustainability Assessment Framework for VET Organizations," Sustainability, MDPI, vol. 7(6), pages 1-19, June.
    3. Kumar Debasis Dutta & Mallika Saha, 2023. "Role of governance in the nexus between financial development and sustainable development," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(6), pages 1181-1215, August.
    4. Charles-Henri DiMaria, 2014. "Sustainability matters," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(3), pages 1257-1269, May.
    5. Jue Yang & Shunsuke Managi & Masayuki Sato, 2015. "The effect of institutional quality on national wealth: an examination using multiple imputation method," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 17(3), pages 431-453, July.
    6. Ullah, Saif & Nobanee, Haitham & Iftikhar, Huma, 2023. "Global financial integration, governance-by-technology, and green growth," International Review of Financial Analysis, Elsevier, vol. 90(C).
    7. Stöver, Jana, 2016. "Green accounting, institutional quality and investment decisions: Macroeconomic implications from an analysis of the oil and mining sector," HWWI Research Papers 171, Hamburg Institute of International Economics (HWWI).
    8. Na Wang & Atta Ullah & Xiaofeng Lin & Taiming Zhang & Jie Mao, 2022. "Dynamic Influence of Urbanization on Inclusive Green Growth in Belt and Road Countries: The Moderating Role of Governance," Sustainability, MDPI, vol. 14(18), pages 1-18, September.
    9. Eslamloueyan, Karim & Jafari, Mahboubeh, 2019. "Do better institutions offset the adverse effect of a financial crisis on investment? Evidence from East Asia," Economic Modelling, Elsevier, vol. 79(C), pages 154-172.
    10. Flaviu Moldovan & Petruta Blaga & Liviu Moldovan & Tiberiu Bataga, 2022. "An Innovative Framework for Sustainable Development in Healthcare: The Human Rights Assessment," IJERPH, MDPI, vol. 19(4), pages 1-27, February.
    11. Cristina Boţa-Avram & Adrian Groşanu & Paula-Ramona Răchişan & Marius Dan Gavriletea, 2018. "The Bidirectional Causality between Country-Level Governance, Economic Growth and Sustainable Development: A Cross-Country Data Analysis," Sustainability, MDPI, vol. 10(2), pages 1-24, February.
    12. Ullah, Atta & Nobanee, Haitham & Ullah, Saif & Iftikhar, Huma, 2024. "Renewable energy transition and regional integration: Energizing the pathway to sustainable development," Energy Policy, Elsevier, vol. 193(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stöver, Jana, 2009. "Do institutions affect sustainability?," HWWI Research Papers 1-18, Hamburg Institute of International Economics (HWWI).
    2. Dietz, Simon & Neumayer, Eric & De Soysa, Indra, 2007. "Corruption, the resource curse and genuine saving," Environment and Development Economics, Cambridge University Press, vol. 12(1), pages 33-53, February.
    3. Ashok Chakravarti, 2012. "Institutions, Economic Performance and the Visible Hand," Books, Edward Elgar Publishing, number 14751, June.
    4. Stela Cani, 2009. "Resource Abundance, Mineral Funds and Institutional Quality," Economics Discussion Papers em-dp2009-04, Department of Economics, University of Reading.
    5. Fofack, Hippolyte, 2009. "Africa and Arab Gulf states : divergent development paths and prospects for convergence," Policy Research Working Paper Series 5025, The World Bank.
    6. Edward Barbier, 2010. "Corruption and the Political Economy of Resource-Based Development: A Comparison of Asia and Sub-Saharan Africa," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 46(4), pages 511-537, August.
    7. Adrian Boos & Karin Holm‐Müller, 2012. "A theoretical overview of the relationship between the resource curse and genuine savings as an indicator for “weak” sustainability," Natural Resources Forum, Blackwell Publishing, vol. 36(3), pages 145-159, August.
    8. Prabir De, 2010. "Governance, Institutions, and Regional Infrastructure in Asia," Working Papers id:3029, eSocialSciences.
    9. Frederick van der Ploeg, 2011. "Natural Resources: Curse or Blessing?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 366-420, June.
    10. Iyigun, Murat, 2006. "Ottoman Conquests and European Ecclesiastical Pluralism," IZA Discussion Papers 1973, IZA Network @ LISER.
    11. Harms, Philipp & an de Meulen, Philipp, 2013. "Demographic structure and the security of property rights: The role of development and democracy," European Journal of Political Economy, Elsevier, vol. 29(C), pages 73-89.
    12. repec:jpe:journl:1368 is not listed on IDEAS
    13. Dreher, Axel & Kotsogiannis, Christos & McCorriston, Steve, 2007. "Corruption around the world: Evidence from a structural model," Journal of Comparative Economics, Elsevier, vol. 35(3), pages 443-466, September.
    14. Fagerberg, Jan & Srholec, Martin & Verspagen, Bart, 2010. "Innovation and Economic Development," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 833-872, Elsevier.
    15. Frederic S. Mishkin, 2007. "Is Financial Globalization Beneficial?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 39(2-3), pages 259-294, March.
    16. Claudia R. Williamson & Carrie B. Kerekes, 2011. "Securing Private Property: Formal versus Informal Institutions," Journal of Law and Economics, University of Chicago Press, vol. 54(3), pages 537-572.
    17. Luis Vaz Silva, 2005. "Geography, European settlements and compared development in the Americas," Working Papers 200518, School of Economics, University College Dublin.
    18. Lawrence King & Osvaldo Gómez Martínez, 2010. "Property Rights Reform and Development: A Critique of the Cross-National Regression Literature," Working Papers wp216, Political Economy Research Institute, University of Massachusetts at Amherst.
    19. Ahmet Faruk Aysan, 2006. "Yonetisim ve Kurumlar Terimlerinin Iktisat Literaturundeki Yukselisi," Working Papers 2006/16, Bogazici University, Department of Economics.
    20. Jue Yang & Shunsuke Managi & Masayuki Sato, 2015. "The effect of institutional quality on national wealth: an examination using multiple imputation method," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 17(3), pages 431-453, July.
    21. Schweickert, Rainer & Thiele, Rainer, 2004. "From Washington to post-Washington? Consensus policies and divergent developments in Latin America and Asia," Kiel Discussion Papers 408, Kiel Institute for the World Economy.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jeborg:v:81:y:2012:i:3:p:794-801. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jebo .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.