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Institutions, Diseases and Economic Progress: A Unified Framework

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  • Sambit Bhattacharyya

Abstract

The sharp division between the 'institutions view' and the 'disease view' has been one of the distinctive features of the 'root causes of economic progress' literature. Based on evidence from cross-national data, the 'institutions school' claims that institutions are the only root cause of development, whereas the 'disease school' claims that diseases are also equally important. In this paper, I contribute to this literature by proposing a unified structure to marry the two conflicting views. I argue that overcoming diseases are of prime importance at an early stage of economic development, whereas institutions are more important at a later stage. I find support for this hypothesis in the development history literature on Africa, India, China and the Americas.

Suggested Citation

  • Sambit Bhattacharyya, 2008. "Institutions, Diseases and Economic Progress: A Unified Framework," Departmental Working Papers 2008-15, The Australian National University, Arndt-Corden Department of Economics.
  • Handle: RePEc:pas:papers:2008-15
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    Cited by:

    1. Thomas K.J. McDermott, 2013. "Reconciling conflicting evidence on the origins of comparative development: A finite mixture model approach," GRI Working Papers 130, Grantham Research Institute on Climate Change and the Environment.
    2. Sambit Bhattacharyya & Steve Dowrick & Jane Golley, 2009. "Institutions and Trade: Competitors or Complements in Economic Development?," The Economic Record, The Economic Society of Australia, vol. 85(270), pages 318-330, September.
    3. Bhattacharyya, Sambit, 2016. "The Historical Origins of Poverty in Developing Countries," MPRA Paper 67902, University Library of Munich, Germany.
    4. Sambit Bhattacharyya, 2011. "Growth Miracles and Growth Debacles," Books, Edward Elgar Publishing, number 13609.
    5. Tol, Richard S. J., 2011. "Poverty Traps and Climate Change," Papers WP413, Economic and Social Research Institute (ESRI).
    6. Richard S J Tol, 2018. "The Economic Impacts of Climate Change," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 12(1), pages 4-25.
    7. Bhattacharyya, Sambit, 2012. "Trade liberalization and institutional development," Journal of Policy Modeling, Elsevier, vol. 34(2), pages 253-269.

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    Keywords

    Root Causes; Institutions; Diseases; Economic Development;
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