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More Open – Better Governed? Evidence from High- and Low-income Countries

Author

Listed:
  • Bergh, Andreas

    (Research Institute of Industrial Economics (IFN))

  • Mirkina, Irina

    (IMT Institute for Advanced Studies)

  • Nilsson, Therese

    (Research Institute of Industrial Economics (IFN))

Abstract

Using World Bank data on institutional quality and the KOF Globalization Index, we examine over 100 countries from 1992 to 2010 to analyze the relationship between economic and social globalization and six measures of institutional quality. Theoretically, the incentives of elites to respond to globalization by improving institutions should differ between low-income and high-income countries. Empirically, increasing economic flows and social globalization are followed by improving institutions in rich countries, while the effect is the opposite for low-income countries. Previous findings of positive effects of trade on institutional quality are likely driven by rich countries.

Suggested Citation

  • Bergh, Andreas & Mirkina, Irina & Nilsson, Therese, 2013. "More Open – Better Governed? Evidence from High- and Low-income Countries," Working Paper Series 997, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0997
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    References listed on IDEAS

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    Keywords

    Globalization; Institutional quality; Developing countries;
    All these keywords.

    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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