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The Regression Calculus Of Economic Convergence And The Contribution Of The Institutional Factor

Author

Listed:
  • Iancu, Aurel

    (Romanian Academy, National Institute of Economic Research)

  • Pecican, Eugen Stefan
  • Olteanu, Dan

    (Romanian Academy, National Institute of Economic Research)

Abstract

This working paper aims to stress the role of the institutional capital and its components, as primary factors, in economic results at the national level, using adequate measurement indicators and econometric models. For this purpose, we analysed the following aspects: the definition of institutional capital and its components with regard to its operationalisation; the numerical expression of the institutional capital and its components by indicators, as well as the description of their content; the confirmation of the significant influence of the institutional capital on economic results. For applying several variants of econometric models including two or more variables to two samples (EU countries and world countries), special attention is paid to matters concerning the checking of the assumption about factor independence, multicolinearity and the attenuation of the consequences of this characteristic. Among the components of the institutional capital, the highest influence on the economic results indicated by the selected samples is exerted by the macroeconomic environment, and, within this environment, by the country rating and the macroeconomic stability.

Suggested Citation

  • Iancu, Aurel & Pecican, Eugen Stefan & Olteanu, Dan, 2010. "The Regression Calculus Of Economic Convergence And The Contribution Of The Institutional Factor," Working Papers of National Institute for Economic Research 100201, Institutul National de Cercetari Economice (INCE).
    • Handle: RePEc:ror:wpince:100201
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    References listed on IDEAS

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    1. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, June.
    2. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, Oxford University Press, vol. 114(1), pages 83-116.
    3. Syed M. Ahsan, 2001. "Institutional Framework and Poverty: A Transition Economy Perspective," CESifo Working Paper Series 593, CESifo.
    4. Paelinck, J., 1978. "Spatial econometrics," Economics Letters, Elsevier, vol. 1(1), pages 59-63.
    5. Mr. Arvind Subramanian & Mr. Francesco Trebbi & Mr. Dani Rodrik, 2002. "Institutions Rule: The Primacy of Institutions over Integration and Geography in Economic Development," IMF Working Papers 2002/189, International Monetary Fund.
    6. Wojciech W. Charemza & Derek F. Deadman, 1992. "New Directions In Econometric Practice," Books, Edward Elgar Publishing, number 84.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Triandafil, Cristina Maria, 2011. "The Analysis Of The Convergence Criteria. Empirical Perspective In The Context Of The Sustainable Character Highlight," Working Papers of National Institute for Economic Research 111205, Institutul National de Cercetari Economice (INCE).

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    More about this item

    Keywords

    institutional capital; public institutions; macroeconomic environment; indicators; econometric models; regression analysis; testing multicolinearity; production function.;
    All these keywords.

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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