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An empirical study of the limits and perspectives of institutional transfers

  • Möller, Marie
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    The aim of this paper is to determine which country-specific characteristics promote and which impede the adoption of institutions. On the basis of a broad panel of 183 countries for the period between 1996 and 2010, we test whether there are tendencies towards a general improvement and towards a convergence of institutional quality. Based on the hypothesis that younger countries tend to adopt the smoothly functioning institutions of older ones, we ana-lyze which of the younger countries have good institutions and why. Among other things, we found that older countries do have better institutions than younger ones, but it is questionable that there is a causal effect. Moreover, the results of our empirical investigation show that having been a UK colony or the degree of economic openness have no effect on the institu-tional quality; while on the other hand, religion, region and dependency on natural resources do indeed have such effects. In addition, the potential role of international organizations with regard to nation building and institutional transfer is discussed.

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    Paper provided by University of Münster, Center for Interdisciplinary Economics (CIW) in its series CIW Discussion Papers with number 02/2012.

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    Date of creation: 2012
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    Handle: RePEc:zbw:ciwdps:022012
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    1. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert Vishny, 1998. "The Quality of Goverment," NBER Working Papers 6727, National Bureau of Economic Research, Inc.
    2. Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer, 2004. "Do Institutions Cause Growth?," NBER Working Papers 10568, National Bureau of Economic Research, Inc.
    3. Jesus Crespo Cuaresma & Harald Oberhofer & Paul Raschky, 2010. "Oil and the Duration of Dictatorships," Monash Economics Working Papers 10-10, Monash University, Department of Economics.
    4. Bhattacharyya, Sambit & Hodler, Roland, 2010. "Natural resources, democracy and corruption," European Economic Review, Elsevier, vol. 54(4), pages 608-621, May.
    5. Stefan Voigt, 2009. "How (Not) to Measure Institutions," MAGKS Papers on Economics 200937, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    6. Charles Rowley & Nathanael Smith, 2009. "Islam’s democracy paradox: Muslims claim to like democracy, so why do they have so little?," Public Choice, Springer, vol. 139(3), pages 273-299, June.
    7. Feld, Lars P. & Voigt, Stefan, 2003. "Economic growth and judicial independence: cross-country evidence using a new set of indicators," European Journal of Political Economy, Elsevier, vol. 19(3), pages 497-527, September.
    8. Barro, Robert J, 1996. " Democracy and Growth," Journal of Economic Growth, Springer, vol. 1(1), pages 1-27, March.
    9. Stephen Knack & Philip Keefer, 1995. "Institutions And Economic Performance: Cross-Country Tests Using Alternative Institutional Measures," Economics and Politics, Wiley Blackwell, vol. 7(3), pages 207-227, November.
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