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Institutions and Poverty

Author

Listed:
  • Edinaldo Tebaldi
  • Ramesh Mohan

Abstract

This study utilises eight alternative measures of institutions and the instrumental variable method to examine the impacts of institutions on poverty. The estimates show that an economy with a robust system to control corruption, an effective government, and a stable political system will create the conditions to promote economic growth, minimise income distribution conflicts, and reduce poverty. Corruption, ineffective governments, and political instability will not only hurt income levels through market inefficiencies, but also escalate poverty incidence via increased income inequality. The results also imply that the quality of the regulatory system, rule of law, voice and accountability, and expropriation risk are inversely related to poverty but their effect on poverty is via average income rather than income distribution.

Suggested Citation

  • Edinaldo Tebaldi & Ramesh Mohan, 2010. "Institutions and Poverty," Journal of Development Studies, Taylor & Francis Journals, vol. 46(6), pages 1047-1066.
  • Handle: RePEc:taf:jdevst:v:46:y:2010:i:6:p:1047-1066
    DOI: 10.1080/00220380903012730
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    References listed on IDEAS

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    1. Tebaldi, Edinaldo & Mohan, Ramesh, 2008. "Institutions-Augmented Solow Model And Club Convergence," MPRA Paper 10386, University Library of Munich, Germany.
    2. Sindzingre, Alice, 2005. "Explaining Threshold Effects of Globalization on Poverty: An Institutional Perspective," WIDER Working Paper Series 053, World Institute for Development Economic Research (UNU-WIDER).
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    Cited by:

    1. repec:spr:soinre:v:136:y:2018:i:1:d:10.1007_s11205-016-1534-8 is not listed on IDEAS
    2. Mohamed Dridi, 2014. "Corruption and Education: Empirical Evidence," International Journal of Economics and Financial Issues, Econjournals, vol. 4(3), pages 476-493.
    3. Maurizio Intarglia & Juan Carlos Cuestas, 2014. "Do institutions alleviate poverty? An empirical analysis," NCID Working Papers 05/2014, Navarra Center for International Development, University of Navarra.
    4. Asongu Simplice & Michael E. Batuo, 2012. "The Impact of Liberalisation Policies on Inequality in Africa," Working Papers of the African Governance and Development Institute. 12/038, African Governance and Development Institute..
    5. Simplice A. Asongu & Oasis Kodila-Tedika, 2018. "Institutions and Poverty: A Critical Comment Based on Evolving Currents and Debates," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(1), pages 99-117, August.
    6. Kodila-Tedika, Oasis & Mulunda Kabange, Martin, 2018. "Constitutional instability and Poverty: Some Empirical Evidence," MPRA Paper 84501, University Library of Munich, Germany.
    7. Michael Enowbi Batuo & Simplice A. Asongu, 2015. "The impact of liberalisation policies on income inequality in African countries," Journal of Economic Studies, Emerald Group Publishing, vol. 42(1), pages 68-100, January.
    8. repec:bla:devpol:v:35:y:2017:i:3:p:349-371 is not listed on IDEAS
    9. Juan Carlos Cuestas & Maurizio Intartaglia, 2016. "Do institutions alleviate poverty? New Empirical Evidence," Economics Bulletin, AccessEcon, vol. 36(1), pages 145-154.
    10. Asongu, Simplice A. & Nwachukwu, Jacinta C., 2017. "Quality of Growth Empirics: Comparative gaps, benchmarking and policy syndromes," Journal of Policy Modeling, Elsevier, vol. 39(5), pages 861-882.
    11. Alessandra Cepparulo & Juan Carlos Cuestas & Maurizio Intartaglia, 2017. "Financial development, institutions, and poverty alleviation: an empirical analysis," Applied Economics, Taylor & Francis Journals, vol. 49(36), pages 3611-3622, August.
    12. repec:eee:jebusi:v:96:y:2018:i:c:p:42-58 is not listed on IDEAS
    13. repec:kap:atlecj:v:45:y:2017:i:3:d:10.1007_s11293-017-9547-5 is not listed on IDEAS
    14. Kodila-Tedika, Oasis & Tcheta-Bampa, Albert, 2014. "Cold War and Institutional Quality: Some Empirical Evidence," MPRA Paper 53965, University Library of Munich, Germany.
    15. Kodila-Tedika, Oasis & Ngunza Maniata, Kevin, 2018. "Financial Constraints and Poverty," MPRA Paper 84839, University Library of Munich, Germany.
    16. Dawson, Andrew, 2013. "The Social Determinants of the Rule of Law: A Comparison of Jamaica and Barbados," World Development, Elsevier, vol. 45(C), pages 314-324.
    17. Erkko Autio & Kun Fu, 2015. "Economic and political institutions and entry into formal and informal entrepreneurship," Asia Pacific Journal of Management, Springer, vol. 32(1), pages 67-94, March.
    18. repec:eee:wdevel:v:105:y:2018:i:c:p:70-82 is not listed on IDEAS
    19. Awaworyi Churchill, Sefa & Smyth, Russell, 2017. "Ethnic Diversity and Poverty," World Development, Elsevier, vol. 95(C), pages 285-302.
    20. Duarte GuimarĂ£es & Ana Paula Ribeiro & Sandra Tavares Silva, 2012. "Macroeconomic Fundamentals of Poverty and Deprivation: an empirical study for developed countries," FEP Working Papers 460, Universidade do Porto, Faculdade de Economia do Porto.
    21. Antonio Savoia & Kunal Sen, 2015. "Measurement, Evolution, Determinants, And Consequences Of State Capacity: A Review Of Recent Research," Journal of Economic Surveys, Wiley Blackwell, vol. 29(3), pages 441-458, July.

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