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Quality of Institutions: Does Intelligence Matter?

Author

Listed:
  • Isaac Kalonda-Kanyama
  • Oasis Kodila-Tedika

Abstract

This paper analyzes the eect of the average level of intelligence on different measures of the quality of institutions, using a 2006 cross-sectional sample of 113 countries. The results show that average IQ positively affects all the measures of institutional quality considered in our study, namely government efficiency, regulatory quality, rule of law, political stability and voice and accountability. The positive effect of intelligence is robust to controlling for other determinants of institutional quality. It follows that countries with higher IQ levels enjoy institutions of better quality than countries with low levels of IQ. This finding should by no means be interpreted as evidence that there exist some countries with more intelligent populations that build better institutions and some other countries with less intelligent populations that build poor institutions. What our finding points out to is the fact that a country's level of the understanding of the rules and principles that govern the institutions and the degree of cooperation of its human capital withinnational institutions is important for institutional quality.

Suggested Citation

  • Isaac Kalonda-Kanyama & Oasis Kodila-Tedika, 2012. "Quality of Institutions: Does Intelligence Matter?," Working Papers 308, Economic Research Southern Africa.
  • Handle: RePEc:rza:wpaper:308
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    References listed on IDEAS

    as
    1. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 222-279, April.
    2. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
    3. Garett Jones & W. Joel Schneider, 2010. "Iq In The Production Function: Evidence From Immigrant Earnings," Economic Inquiry, Western Economic Association International, vol. 48(3), pages 743-755, July.
    4. Potrafke, Niklas, 2012. "Intelligence and corruption," Economics Letters, Elsevier, vol. 114(1), pages 109-112.
    5. Axel Dreher, 2006. "Does globalization affect growth? Evidence from a new index of globalization," Applied Economics, Taylor & Francis Journals, vol. 38(10), pages 1091-1110.
    6. repec:hrv:faseco:30747160 is not listed on IDEAS
    7. Jones, Garett, 2011. "National IQ and National Productivity: The Hive Mind Across Asia," Asian Development Review, Asian Development Bank, vol. 28(1), pages 51-71.
    8. Garett Jones & W. Schneider, 2006. "Intelligence, Human Capital, and Economic Growth: A Bayesian Averaging of Classical Estimates (BACE) Approach," Journal of Economic Growth, Springer, vol. 11(1), pages 71-93, March.
    9. Weede, Erich & Kampf, Sebastian, 2002. "The Impact of Intelligence and Institutional Improvements on Economic Growth," Kyklos, Wiley Blackwell, vol. 55(3), pages 361-380.
    10. Ram, Rati, 2007. "IQ and economic growth: Further augmentation of Mankiw-Romer-Weil model," Economics Letters, Elsevier, vol. 94(1), pages 7-11, January.
    11. Islam, Roumeen & Montenegro, Claudio E., 2002. "What determines the quality of institutions?," Policy Research Working Paper Series 2764, The World Bank.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    governance; institutions; intelligence;

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • I2 - Health, Education, and Welfare - - Education

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