Economic development, growth, institutions and geography

S. Bhupatiraju, B. Verspagen

Research output: Working paper / PreprintWorking paper

105 Downloads (Pure)

Abstract

In this paper, we test the Rodrik et al (2004) framework to explain differences in development levels across countries by using a broader set of definitions for institutions, geography and economic variables. We use a multi-faceted database to measure institutions in an attempt to go beyond the single-dimension measures that are often employed. We find that institutions trump other factors (geography and trade) when we use GDP per capita as an independent variable. When we expand the dependent variable to include other aspects of development, such as growth and investment, we find that institutions, growth and geography are all important variables. In this case, institutions no longer trump the other factors. In this case, we also find that the same institutions variable that was positively associated to GDP per capita is now negatively correlated with the more dynamic development variable.
Original languageEnglish
Place of PublicationMaastricht
PublisherUNU-MERIT
Number of pages26
Publication statusPublished - 1 Jan 2013

Publication series

SeriesUNU-MERIT Working Papers
Number056

Cite this