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The primacy of institutions reconsidered: The effects of malaria prevalence in the empirics of development

Listed author(s):
  • Carstensen, Kai
  • Gundlach, Erich

Some recent empirical studies deny any direct performance effects of measures of geography and conclude that institutions trump all other potential determinants of development. For given effects of institutional quality, our empirical results indicate quantitatively important direct negative performance effects of a measure of disease ecology, namely malaria prevalence. This finding appears to be robust to using alternative specifications, instrumentations, and samples. We conclude from our estimates that implementing good institutions appears to be necessary but not sufficient to generate a persistent process of successful economic development.

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Paper provided by Kiel Institute for the World Economy (IfW) in its series Kiel Working Papers with number 1210.

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Date of creation: 2005
Handle: RePEc:zbw:ifwkwp:1210
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  14. Masters, William A & McMillan, Margaret S, 2001. "Climate and Scale in Economic Growth," Journal of Economic Growth, Springer, vol. 6(3), pages 167-186, September.
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  17. Olsson, Ola & Hibbs, Douglas Jr., 2005. "Biogeography and long-run economic development," European Economic Review, Elsevier, vol. 49(4), pages 909-938, May.
  18. Jean-Marie Dufour, 1997. "Some Impossibility Theorems in Econometrics with Applications to Structural and Dynamic Models," Econometrica, Econometric Society, vol. 65(6), pages 1365-1388, November.
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