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Do Institutions Cause Growth? / Edward L. Glaeser, Rafael La Porta, Florencio Lopez-de-Silane, Andrei Shleifer.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Glaeser, Edward L.
Contributor:
National Bureau of Economic Research.
La Porta, Rafael.
Lopez-de-Silane, Florencio.
Shleifer, Andrei.
Series:
Working Paper Series (National Bureau of Economic Research) no. w10568.
NBER working paper series no. w10568
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2004.
Summary:
We revisit the debate over whether political institutions cause economic growth, or whether, alternatively, growth and human capital accumulation lead to institutional improvement. We find that most indicators of institutional quality used to establish the proposition that institutions cause growth are constructed to be conceptually unsuitable for that purpose. We also find that some of the instrumental variable techniques used in the literature are flawed. Basic OLS results, as well as a variety of additional evidence, suggest that a) human capital is a more basic source of growth than are the institutions, b) poor countries get out of poverty through good policies, often pursued by dictators, and c) subsequently improve their political institutions.
Notes:
Print version record
June 2004.

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