Inequality in Developing Economies: The Role of Institutional Development
This paper studies the distributive impact of institutional change in developing countries. In such economies, property rights systems may preserve the interests of an influential minority, who can control key-markets, access to assets and investment opportunities, especially if they enjoy disproportionate political power. We test this hypothesis using cross-section and panel data methods on a sample of low- and middle-income economies from Africa, Asia and Latin America. Results suggest that: (a) increasing property rights protection increases income inequality; (b) this effect is larger in low-democracy environments; (c) few countries have developed political institutions capable of counterbalancing this effect.
|Date of creation:||2011|
|Contact details of provider:|| Postal: Streatham Court, Rennes Drive, Exeter EX4 4PU|
Phone: (01392) 263218
Fax: (01392) 263242
Web page: http://business-school.exeter.ac.uk/about/departments/economics/
More information through EDIRC
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.:
- Berggren, Niclas, 1999. "Economic Freedom and Equality: Friends or Foes?," Public Choice, Springer, vol. 100(3-4), pages 203-223, September.
- Ann-Sofie Isaksson, 2011.
"Social divisions and institutions: assessing institutional parameter variation,"
Springer, vol. 147(3), pages 331-357, June.
- Isaksson, Ann-Sofie, 2008. "Social divisions and institutions: Assessing institutional parameter variation," Working Papers in Economics 282, University of Gothenburg, Department of Economics, revised 01 Aug 2008.
- Alberto Chong & Mark Gradstein, 2004.
"Inequality and Institutions,"
Research Department Publications
4361, Inter-American Development Bank, Research Department.
- Acemoglu, Daron & Robinson, James A, 2002. "The Political Economy of the Kuznets Curve," Review of Development Economics, Wiley Blackwell, vol. 6(2), pages 183-203, June.
- Alberto Chong & Mark Gradstein & Cecilia Calderon, 2009. "Can foreign aid reduce income inequality and poverty?," Public Choice, Springer, vol. 140(1), pages 59-84, July.
- Emilie Daudey & Cecilia Garcia-Penalosa, 2007. "The personal and the factor distributions of income in a cross-section of countries," Journal of Development Studies, Taylor & Francis Journals, vol. 43(5), pages 812-829.
- Rodrik, Dani, 1998.
"Democracies Pay Higher Wages,"
CEPR Discussion Papers
1776, C.E.P.R. Discussion Papers.
- Robert J. Barro & Jong-Wha Lee, 2000.
"International Data on Educational Attainment: Updates and Implications,"
CID Working Papers
42, Center for International Development at Harvard University.
- Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-563, July.
- Robert J. Barro & Jong-Wha Lee, 2000. "International Data on Educational Attainment Updates and Implications," NBER Working Papers 7911, National Bureau of Economic Research, Inc.
- Henry Tam, 2008. "An economic or political Kuznets curve?," Public Choice, Springer, vol. 134(3), pages 367-389, March.
- Giovanni S.F. Bruno, 2004.
"Approximating the Bias of the LSDV Estimator for Dynamic Unbalanced Panel Data Models,"
KITeS Working Papers
159, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jul 2004.
- Bruno, Giovanni S.F., 2005. "Approximating the bias of the LSDV estimator for dynamic unbalanced panel data models," Economics Letters, Elsevier, vol. 87(3), pages 361-366, June.
- Easterly, William, 2007. "Inequality does cause underdevelopment: Insights from a new instrument," Journal of Development Economics, Elsevier, vol. 84(2), pages 755-776, November.
- Chong, Alberto & Calderon, Cesar, 2000. "Institutional Quality and Income Distribution," Economic Development and Cultural Change, University of Chicago Press, vol. 48(4), pages 761-786, July.
- Gradstein. Mark*Milanovic, Branko, 2002.
"Does Liberte = Egalite ? A survey of the empirical links between democracy and inequality with some evidence on the transition economies,"
Policy Research Working Paper Series
2875, The World Bank.
- Mark Gradstein & Branko Milanovic, 2004. "Does Libertè = Egalité? A Survey of the Empirical Links between Democracy and Inequality with Some Evidence on the Transition Economies," Journal of Economic Surveys, Wiley Blackwell, vol. 18(4), pages 515-537, 09.
- Hongyi Li & Lyn Squire & Heng-fu Zou, 1998.
"Explaining International and Intertemporal Variations in Income Inequality,"
CEMA Working Papers
73, China Economics and Management Academy, Central University of Finance and Economics.
- Li, Hongyi & Squire, Lyn & Zou, Heng-fu, 1998. "Explaining International and Intertemporal Variations in Income Inequality," Economic Journal, Royal Economic Society, vol. 108(446), pages 26-43, January.
- AMENDOLA, Adalgiso & EASAW, Joshy & SAVOIA, Antonio, 2010.
"Inequality in Developing Economies: The Role of Institutional Development,"
CELPE Discussion Papers
116, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
- Adalgiso Amendola & Joshy Easaw & Antonio Savoia, 2013. "Inequality in developing economies: the role of institutional development," Public Choice, Springer, vol. 155(1), pages 43-60, April.
- Adalgiso Amendola & Joshy Easaw & Antonio Savoia, 2011. "Inequality in Developing Economies: The Role of Institutional Development," Discussion Papers 1107, Exeter University, Department of Economics.
- José Cheibub & Jennifer Gandhi & James Vreeland, 2010. "Democracy and dictatorship revisited," Public Choice, Springer, vol. 143(1), pages 67-101, April.
- Keefer, Philip & Knack, Stephen, 2000.
"Polarization, politics, and property rights : links between inequality and growth,"
Policy Research Working Paper Series
2418, The World Bank.
- Keefer, Philip & Knack, Stephen, 2002. "Polarization, Politics and Property Rights: Links between Inequality and Growth," Public Choice, Springer, vol. 111(1-2), pages 127-154, March.
- Bun, Maurice J. G. & Kiviet, Jan F., 2003.
"On the diminishing returns of higher-order terms in asymptotic expansions of bias,"
Elsevier, vol. 79(2), pages 145-152, May.
- Maurice J.G. Bun & Jan F. Kiviet, 2002. "On the Diminishing Returns of Higher-order Terms in Asymptotic Expansions of Bias," Tinbergen Institute Discussion Papers 02-099/4, Tinbergen Institute, revised 24 Oct 2002.
- World Bank, 2007. "World Development Indicators 2007," World Bank Publications, The World Bank, number 8150.
- Anderson, T. W. & Hsiao, Cheng, 1982. "Formulation and estimation of dynamic models using panel data," Journal of Econometrics, Elsevier, vol. 18(1), pages 47-82, January.
When requesting a correction, please mention this item's handle: RePEc:exe:wpaper:1107. 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: (Carlos Cortinhas)
If references are entirely missing, you can add them using this form.