The Rule of Law and Economic Growth: Where are We?

Haggard, Stephan; Tiede, Lydia Brashear

doi:10.1016/j.worlddev.2010.10.007

Cited by 255 publications

(138 citation statements)

References 67 publications

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“…In comparison to less regulated countries, my results indicate that highly regulated economies witness higher levels of economic growth. While these results are in line with institutionalist's view that tighter regulation promotes economic growth, and it does not compare with other studies such as those by Goldsmith [30] and Gani [27]. However, these results must be interpreted with caution because of fewer number of observations (less than 30).…”

Section: Multiple Meta-regression Analysiscontrasting

confidence: 59%

Economic Governance and Economic Growth in South and East Asia & Pacific Region: Evidence from Systematic Literature Reviews and Meta-analysis

Yerrabati¹,

Hawkes²

2015

aeb

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With economists and policy makers recognising the role of governance for growth, recent research focus is on governance and its impact on growth. However, with ever growing number of studies using different methodologies, data sources and country groupings, a high amount of heterogeneity is created among reported results. This has left both policy makers and researchers having different views on the importance of governance for growth. This paper has meta-synthesised the empirical evidence on governance and growth in South and East Asia Pacific countries based on 29 studies with 554 estimates from 1980 -2012. The empirical results show that while corruption is significantly and negatively correlated with growth, government effectiveness and regulation are positively and significantly correlated. Political stability and law have no important effect on economic growth. We conclude that empirical research literature on governance and growth has failed to provide evidence of a true effect of voice and accountability on growth. Finally, overall governance is important for growth. Our results have important policy implications.

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Section: Multiple Meta-regression Analysiscontrasting

confidence: 59%

Economic Governance and Economic Growth in South and East Asia & Pacific Region: Evidence from Systematic Literature Reviews and Meta-analysis

Yerrabati¹,

Hawkes²

2015

aeb

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“…A similar consideration may also be applied when the rule of law is taken into account. Efficient judicial institutions are crucial for innovation because they guarantee the protection of property rights (Haggard and Tiede, 2011). Especially in the advanced world context, when the cost of innovation increases, an efficient judicial system strengthens incentives for firms to make risky investments in innovative products.…”

Section: Resultsmentioning

confidence: 99%

Inclusive Institutions, Innovation and Economic Growth: Estimates for European Countries

d’Agostino

Scarlato

2014

SSRN Journal

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This paper investigates the theoretical and empirical foundations of the links between inclusive institutions, innovation and economic growth. Its first contribution to the literature is to provide a non-scale R&D-based growth model incorporating negative externalities linked to low institutional quality that not only affect the productivity of private and human capital, but also constrain the diffusion of existing technological knowledge. In turn, these negative externalities reduce economic growth. The second contribution of this paper is to run estimates for a sample of European Union countries. Empirical analysis based on pooled long-and short-run estimates confirms the importance of private capital and technology as instruments to increase economic growth in European countries and suggests the existence of a positive relationship between inclusive institutions, innovation and economic growth. The estimates also show that market failures linked to the degree of market competition and to the level of network interaction in the economic system significantly condition the influence of formal institutions on private capital, technology and GDP growth.JEL classification: O30, O41, O43

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“…The findings in Haggard and Tiede (2011), however, suggest that developing countries vary in the way different types of institutional quality are combined. Specifically, they note that a large cluster of developing countries combines high corruption levels with relatively well functioning property rights, whereas a second smaller cluster is worse in both dimensions and also very violent.…”

Section: Effectiveness (Ge) Control Of Corruption (Cc) Regulatory Qmentioning

confidence: 93%

“…As suggested by the findings in Haggard and Tiede (2011), we examine different types of institutional quality separately, and we avoid what Blonigen and Wang (2005) call 'inappropriate pooling of wealthy and poor countries' by using both sample splits and interaction effects. In line with our theoretical predictions, results reveal that globalization is typically followed by improved institutional quality in rich countries, but in poor countries this relationship is the opposite.…”

Section: Introductionmentioning

confidence: 99%

More Open Better Governed? Evidence from High- and Low-Income Countries

2013

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Summary -Using World Bank data on institutional quality and the KOF Globalization Index, we examine over 100 countries from 1992 to 2010 to analyze the relationship between economic and social globalization and six measures of institutional quality. Theoretically, the incentives of elites to respond to globalization by improving institutions should differ between low-income and high-income countries. Empirically, increasing economic flows and social globalization are followed by improving institutions in rich countries, while the effect is the opposite for low-income countries. Previous findings of positive effects of trade on institutional quality are likely driven by rich countries. Terms of use: Documents in EconStor may

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The Rule of Law and Economic Growth: Where are We?

Cited by 255 publications

References 67 publications

Economic Governance and Economic Growth in South and East Asia & Pacific Region: Evidence from Systematic Literature Reviews and Meta-analysis

Economic Governance and Economic Growth in South and East Asia & Pacific Region: Evidence from Systematic Literature Reviews and Meta-analysis

Inclusive Institutions, Innovation and Economic Growth: Estimates for European Countries

More Open Better Governed? Evidence from High- and Low-Income Countries

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