Industrial Growth and the Quality of Institutions : What Do (Transition) Economies Have to Gain from the Rule of Law?

The authors empirically test the link between industrial growth and indicators of institutional quality. They find significant evidence that institutional quality affects inindustrial 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 bureacratic 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.

Bibliographic Details

Main Authors:	Grigorian, David A., Martinez, Albert
Format:	Policy Research Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2000-11
Subjects:	ADMINISTRATIVE BARRIERS, BARRIERS TO ENTRY, BENCHMARK, BUREAUCRACY, BUREAUCRATIC QUALITY, BUSINESS ENVIRONMENT, CAPITAL ACCUMULATION, CAPITAL INVESTMENTS, CAPITAL MARKETS, CAPITAL STOCK, CENTRAL PLANNING, CIVIL LIBERTIES, COMPARATIVE ADVANTAGE, CONTRACT ENFORCEMENT, CONVERGENCE, CORRUPTION, COUNTRIES, COUNTRY GROWTH, COVARIANCE MATRIX, DEPENDENT VARIABLE, DEVELOPING COUNTRIES, DIRECT INVESTMENT, ECONOMIC CONDITIONS, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC PERFORMANCE, ECONOMISTS, ELASTICITIES, ELASTICITY, EMPIRICAL ANALYSIS, EMPIRICAL GROWTH LITERATURE, EMPIRICAL LITERATURE, EMPLOYMENT, ENDOGENOUS GROWTH, ERROR TERM, EXCHANGE RATE, EXCHANGE RATE REGIMES, EXPLANATORY VARIABLES, EXPORTS, FINANCIAL DEPTH, FINANCIAL DEVELOPMENT, FINANCIAL INSTITUTIONS, FINANCIAL LIBERALIZATION, FINANCIAL SECTOR, FINANCIAL SECTORS, FOREIGN ENTRY, FOREIGN EXCHANGE, GDP, GROWTH MODEL, GROWTH REGRESSION, HUMAN CAPITAL, IMPORTS, INCOME, INCOME DISTRIBUTION, INCREASING RETURNS, INCREASING RETURNS TO SCALE, INDEPENDENT VARIABLES, INDUSTRIAL POLICY, INDUSTRIAL SECTOR, INSTITUTIONAL CHANGE, INSTITUTIONAL FRAMEWORK, INSTITUTIONAL QUALITY, INSTITUTIONAL REFORMS, INSTITUTIONAL VARIABLES, INVESTMENT CLIMATE, INVESTMENT RATE, INVESTMENT RATIO, IRREVERSIBILITY, LAW INDICATOR, LEGAL FRAMEWORK, LEGISLATION, LIQUIDITY, LONG RUN, LONG-RUN GROWTH, M2, MACROECONOMIC CONDITIONS, MACROECONOMIC DETERMINANTS, MARGINAL EFFECT, MARGINAL PRODUCT, MARKET ECONOMIES, MONETARY ECONOMICS, NEW GROWTH THEORIES, OIL, OUTPUT GROWTH, OUTPUT PER CAPITA, POLICY IMPLICATIONS, POLICY MAKERS, POLICY RESEARCH, POLITICAL ECONOMY, POLITICAL INSTITUTIONS, POOR COUNTRIES, POPULATION GROWTH, POSITIVE EXTERNALITIES, PRIVATE INVESTMENT, PRIVATE SECTOR, PRIVATE SECTOR GROWTH, PRODUCTION FUNCTION, PRODUCTION PROCESS, PRODUCTIVITY, PROPERTY RIGHTS, PROTECTIONS, PUBLIC GOOD, REGULATORY FRAMEWORK, RELATIVE IMPORTANCE, RESOURCE ALLOCATION, RETURNS TO SCALE, RULE OF LAW, SAFETY NET, SAVINGS, SIGNIFICANT EFFECT, SIGNIFICANT EVIDENCE, STAGFLATION, STANDARD ERRORS, STREAMS, TECHNOLOGICAL CHANGE, TIME SERIES, TOTAL FACTOR PRODUCTIVITY, TRANSACTION COSTS, TRANSITION, TRANSITION COUNTRIES, TRANSITION ECONOMIES, TRANSITION ECONOMY, VALUATION,
Online Access:	http://documents.worldbank.org/curated/en/2000/11/717452/industrial-growth-quality-institutions-transition-economies-gain-rule-law http://hdl.handle.net/10986/19743
Tags:	Add Tag No Tags, Be the first to tag this record!