Institutional Effect over Economic Growth: New Evidence for Latin America
In lieu of the institutional hypothesis of economic growth, an economic model and an econometric model are proposed to explore how important institutional settings were for economic performance during the first ten years of the new millennium in Latin America. According to instrumental variables models, institutional quality explains 1.13 and 1.09 of income differences for the decade 2000 - 2010, holding formal and informal structural characteristics constant. The highest average income was greater in a factor of 5,6 than the lowest average income so that, giving econometric results, institutional quality accounts for 20% of such income gap. Compared with short term gains, only Argentina, Chile and Uruguay seem to have been implemented changes in technical efficiency during the decade relevant for Total Factor Productivity levels.
|Date of creation:||25 Apr 2012|
|Date of revision:|
|Contact details of provider:|| |
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.:
- António Afonso & Ludger Schuknecht & Vito Tanzi, 2005.
"Public sector efficiency: An international comparison,"
Springer, vol. 123(3), pages 321-347, June.
- Afonso, António & Schuknecht, Ludger & Tanzi, Vito, 2003. "Public sector efficiency: an international comparison," Working Paper Series 0242, European Central Bank.
- Aron, Janine, 2000. "Growth and Institutions: A Review of the Evidence," World Bank Research Observer, World Bank Group, vol. 15(1), pages 99-135, February.
- Afonso, António & Schuknecht, Ludger & Tanzi, Vito, 2006.
"Public sector efficiency: evidence for new EU member states and emerging markets,"
Working Paper Series
0581, European Central Bank.
- Antonio Afonso & Ludger Schuknecht & Vito Tanzi, 2010. "Public sector efficiency: evidence for new EU member states and emerging markets," Applied Economics, Taylor & Francis Journals, vol. 42(17), pages 2147-2164.
- António Afonso & Ludger Schuknecht & Vito Tanzi, 2006. "Public Sector Efficiency: Evidence for New EU Member States and Emerging Markets," Working Papers Department of Economics 2006/01, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- James A. Robinson & Daron Acemoglu, 2000. "Political Losers as a Barrier to Economic Development," American Economic Review, American Economic Association, vol. 90(2), pages 126-130, May.
- Chang, Ha-Joon, 2006. "Understanding the Relationship between Institutions and Economic Development: Some Key Theoretical Issues," Working Paper Series DP2006/05, World Institute for Development Economic Research (UNU-WIDER).
- Stanley L. Engerman & Kenneth L. Sokoloff, 2003. "Institutional and Non-Institutional Explanations of Economic Differences," NBER Working Papers 9989, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:col:000444:009591. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joan M. Tejedor E.)
If references are entirely missing, you can add them using this form.