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Sustained Macroeconomic Reforms, Tepid Growth: A Governance Puzzle in Bolivia?

  • Daniel Kaufmann

    (The World Bank)

  • Massimo Mastruzzi

    (The World Bank)

  • Diego Zavaleta

    (The World Bank)

We are increasingly cognizant of the limits to large cross-country empirical studies in trying to understand in-depth a particular country reality, in ways useful for advice. At the same time, merely relying on a single country account at a particular point in time ignores the historical and comparative cross-country perspective. Worse, an in-depth investigation of a single issue within a country begs the question of whether such particular issue may be fundamental for the country's growth and development relative to other determinants, or not. Further, drawbacks exist from excessive reliance on narrow empirical approaches, or on mere qualitative narrative. Consequently, the approach undertaken here for the case of Bolivia is of an integrated nature, combining the following strands: i) an historical perspective from the twin standpoints of the evolution of the enterprise and government sectors over the past half century; ii) an in-depth review of the literature on explanations of Bolivia's performance; iii) an empirical analysis of the country's enterprise sector performance on the basis of a detailed firm- level survey conducted recently in 80 countries, and, iv) an empirical analysis of Bolivia's public agencies based on a survey of public officials in Bolivia working in over 100 institutions. To provide an additional element of comparability, we also utilize cross-country governance indicators.

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File URL: http://econwpa.repec.org/eps/dev/papers/0308/0308003.pdf
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Paper provided by EconWPA in its series Development and Comp Systems with number 0308003.

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Length: 53 pages
Date of creation: 26 Aug 2003
Date of revision:
Handle: RePEc:wpa:wuwpdc:0308003
Note: Type of Document - Acrobat PDF; pages: 53
Contact details of provider: Web page: http://econwpa.repec.org

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  1. Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Governance matters," Policy Research Working Paper Series 2196, The World Bank.
  2. Paul P. Streeten, 1999. "Governance," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(4), pages 355-384.
  3. Eduardo Lora & Ugo Panizza, 2002. "Structural Reforms in Latin America under Scrutiny," Research Department Publications 4301, Inter-American Development Bank, Research Department.
  4. Nakamura, Alice & Nakamura, Masao, 1985. "On the performance of tests by Wu and by Hausman for detecting the ordinary least squares bias problem," Journal of Econometrics, Elsevier, vol. 29(3), pages 213-227, September.
  5. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August.
  6. Lui, Francis T, 1985. "An Equilibrium Queuing Model of Bribery," Journal of Political Economy, University of Chicago Press, vol. 93(4), pages 760-81, August.
  7. Simon Johnson & Daniel Kaufman & Andrei Shleifer, 1997. "The Unofficial Economy in Transition," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(2), pages 159-240.
  8. Sanjeev Gupta, 1998. "Does Corruption Affect Income Inequality and Poverty?," IMF Working Papers 98/76, International Monetary Fund.
  9. Johnson, Simon & Kaufmann, Daniel & Zoido-Lobaton, Pablo, 1999. "Corruption, public finances, and the unofficial economy," Policy Research Working Paper Series 2169, The World Bank.
  10. Bai, Chong-en & Wei, Shang-Jin, 2001. "The quality of bureaucracy and capital account policies," Policy Research Working Paper Series 2575, The World Bank.
  11. Paul Heywood, 1997. "Political Corruption: Problems and Perspectives," Political Studies, Political Studies Association, vol. 45(3), pages 417-435, 08.
  12. Johnson, Simon & Kaufmann, Daniel & Zoido-Lobaton, Pablo, 1998. "Regulatory Discretion and the Unofficial Economy," American Economic Review, American Economic Association, vol. 88(2), pages 387-92, May.
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