IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/5254.html
   My bibliography  Save this paper

Can disaggregated indicators identify governance reform priorities ?

Author

Listed:
  • Kraay, Aart
  • Tawara, Norikazu

Abstract

Many highly-disaggregated cross-country indicators of institutional quality and the business environment have been developed in recent years. The promise of these indicators is that they can be used to identify specific reform priorities that policymakers and aid donors can target in their efforts to improve institutional and regulatory quality outcomes. Doing so however requires evidence on the partial effects of these many very detailed variables on outcomes of interest, for example, investor perceptions of corruption or the quality of the regulatory environment. In this paper we use Bayesian Model Averaging (BMA) to systematically document the partial correlations between disaggregated indicators and several closely-related outcome variables of interest using two leading datasets: the Global Integrity Index and the Doing Business indicators. We find major instability across outcomes and across levels of disaggregation in the set of indicators identified by BMA as important determinants of outcomes. Disaggregated indicators that are important determinants of one outcome are on average not important determinants of other very similar outcomes. And for a given outcome variable, indicators that are important at one level of disaggregation are on average not important at other levels of disaggregation. These findings illustrate the difficulties in using highly-disaggregated indicators to identify reform priorities.

Suggested Citation

  • Kraay, Aart & Tawara, Norikazu, 2010. "Can disaggregated indicators identify governance reform priorities ?," Policy Research Working Paper Series 5254, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5254
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2010/03/31/000158349_20100331142656/Rendered/PDF/WPS5254.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Vinod Thomas & Xubei Luo, 2011. "Overlooked Links in the Results Chain," World Bank Publications, The World Bank, number 2347.
    2. Nancy Birdsall & Homi Kharas & Ayah Mahgoub & Rita Perakis, 2010. "Quality of Official Development Assistance Assessment," Working Papers id:3228, eSocialSciences.

    More about this item

    Keywords

    Statistical&Mathematical Sciences; Environmental Economics&Policies; Economic Theory&Research; Governance Indicators; Econometrics;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:5254. 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: (Roula I. Yazigi). General contact details of provider: http://edirc.repec.org/data/dvewbus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.