Industrial Growth and the Quality of Institutions : What Do (Transition) Economies Have to Gain from the Rule of Law? / A. David Grigorian, Albert Martinez.

Format:

Book

Author/Creator:

Grigorian, A. David, author.

Martínez, Albert, author.

Series:

Policy research working papers ; 2475.

Policy research working papers ; 2475

Language:

English

Subjects (All):

Industrial policy.

Physical Description:

1 online resource (42 pages).

Other Title:

Industrial growth and quality of institutions

Policy research working paper vol. 2475

Place of Publication:

Washington, DC : World Bank, 1999.

Summary:

November 2000 Developing the legal and regulatory framework, improving contract enforcement, and reducing administrative barriers in the business environment increases the amount of investment and improves the efficiency of resource allocation. Grigorian and Martinez empirically test the link between industrial growth and indicators of institutional quality. They find significant evidence that institutional quality affects industrial growth in 27 Asian and Latin American countries. Their results suggest that the development of the legal and regulatory framework works its way to industrial growth through both investment and total factor productivity. The implications for policymakers in transition economies: Institution building should complement privatization, public and private investment in education, research and development, and measures to promote foreign direct investment. Specifically, policymakers should try to reduce corruption, eliminate bureaucratic barriers, and improve the legal environment and contract enforcement. Special attention should also be given to measures to deepen financial intermediation, improve the financial sector infrastructure, and increase the efficiency of financial transactions. This paper--a product of the Private and Financial Sectors Development Unit, Europe and Central Asia Region--is part of a larger effort in the region to study the determinants of private sector growth in transition economies. The authors may be contacted at dgrigorian@worldbank.org or amartinez2@worldbank.org.

Notes:

Description based on publisher supplied metadata and other sources.

Includes bibliographical references and index.

Publisher Number:

10.1596/1813-9450-2475