Ahmad, Mahyudin and Hall, Stephen G. (2012): Do institutions matter for growth? Evidence from East Asian countries.
Download (307kB) | Preview
Utilizing neoclassical growth framework augmented with institutional controls and latest estimation technique in panel data analysis, this study identifies the crucial institutional qualities in East Asian and other developing countries and uncovers the channel of their effects toward economic growth. Furthermore, it extends the empirical evidence on the institutional importance toward economic growth in the developing countries particularly the East Asian countries which, apart from Rodrik (1997) and Campos and Nugent (1999), have somehow been left out from the empirical investigation.
|Item Type:||MPRA Paper|
|Original Title:||Do institutions matter for growth? Evidence from East Asian countries|
|Keywords:||Institutions; economic growth; Asian Financial Crisis; dynamic panel analysis; generalized methods of moments|
|Subjects:||O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O43 - Institutions and Growth
E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E13 - Neoclassical
|Depositing User:||Mahyudin Ahmad|
|Date Deposited:||23. Oct 2012 19:26|
|Last Modified:||13. Feb 2013 15:27|
Abidin, M .Z. (2003). Economic Governance in Malaysia and its Links with the Asian Crisis. In Y. Shimomura, The Role of Governance in Asia (pp. 316-348). Singapore: Institute of Southeast Asian Studies.
Acemoglu, D. & Johnson S. (2005). Unbundling Institutions. Journal of Political Economy 113 (5), pp. 949-995.
Acemoglu, D., Johnson, S. & Robinson J.A. (2001) The Colonial Origins of Comparative Development: An Empirical Investigation. American Economic Review, 91, pp. 1369 – 1401.
Acemoglu, D., Johnson, S. & Robinson, J. A., (2005). Institutions as a Fundamental Cause of Long-Run Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 6, pages 385-472 Elsevier.
Ahrens, J. (2002). Governance and economic development: A comparative institutional approach. New Thinking in Political Economy series. Cheltenham UK, Northampton Massachusetts : Edwards Elgar.
Arellano. M. & Bond, S.R. (1991). Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations. Review of Economics Studies 58 (2), pp.277-297.
Arellano, M. & Bover, O. (1995). Another Look at the Instrumental Variable Estimation of Error Component Models. Journal of Econometrics 68 (1), pp. 29-51.
Bond, S., Hoeffler, A. & Temple, J. (2001). GMM Estimation of Empirical Growth Models. CEPR Discussion Paper No. 3048.
Blundell, R. & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics 87 (1), pp. 115–143.
Campos, N. F. & Nugent, J. B. (1998) Institutions and Growth: Can Human Capital Be a Link? Cepal Review 64, pp. 7-27.
Campos, N. F. & Nugent, J. B. (1999) Development Performance and the Institutions of Governance: Evidence from East Asia and Latin America, World Development, 27 (3), pp. 439-452.
Caselli, F., Esquivel, G., & Lefort, F., (1996). Reopening the convergence debate: A new look at cross-country growth empirics. Journal of Economic Growth 1 (3), pp. 363–389.
Collins, S. M. and Bosworth, B. P., (1996), Economic Growth in East Asia: Accumulation versus Assimilation, Brookings Papers on Economic Activity, 27, issue 1996-2, p. 135-204,
Corsetti, G., Pesenti, P., and Roubini, N. (1998). What Caused the Asian Currency and Financial Crisis? Asian Crisis homepage, retrieved from www.stern.nyu.edu .
Easterly, W. and Levine, R. (2002). "It's Not Factor Accumulation: Stylized Facts and Growth Models," Working Papers Central Bank of Chile 164, Central Bank of Chile.
Frankel, G. A. (1998). The Asian Model, the Miracle, the Crisis and the Fund. Address to the US Trade Commission, 16 April.
Glaeser, E. L., La Porta, R., Lopez-de-Silanes, F., Shleifer, A. (2004) Do Institutions Cause Growth? Journal of Economic Growth, 9, pp. 271-303.
Gonzalez, E.T. and Mendoza, L. (2001). Governance in Southeast Asia: Issues and Options. Mimeo. Philippines: Philippines Institute of Development Studies.
Hall, R. E. & Jones, C. I. (1999) Why Do Some Countries Produce So Much More Output per Worker Than Others? The Quarterly Journal of Economics, 114, pp. 83-116.
Heston, A., Summers, R. & Aten, B. (2009). Penn World Table Version 6.3, Center for International Comparisons of Production, Income and Prices at the University of Pennsylvania, August 2009.
Hoeffler, A. (2002). The augmented Solow model and the African growth debate. Oxford Bulletin of Economics and Statistics 64 (2), pp. 135–158.
Islam, N. (1995). Growth empirics: a panel data approach. Quarterly Journal of Economics 110 (4), pp. 1127–1170.
Iwata, S., Khan, M. S., Murao, H. (2002). Sources of Economic Growth in East Asia: A Nonparametric Assessment, IMF Working Paper No. WP/02/13.
Jaggers, K. & Marshall, M. G. (2000). Polity IV Project, Center for International Development and Conflict Management, University of Maryland.
Kaufmann, D., Kraay, A. & Mastruzzi, M. (2009). Governance Matters VIII: Aggregate and Individual Governance Indicators, 1996-2008. The World Bank Policy Research Working Paper No. 4978.
Knack, S. & Keefer, P. (1995) Institutions and Economic Performance: Cross-country Tests using Alternative Institutional Measures. Economics and Politics, 7, pp. 207-227.
Krugman P. (1995). The Myth of Asia's Miracle, Foreign Affairs, 62.
Krugman, P. (1998). What happened to Asia? Paul Krugman homepage, retrieved on 26 March 2010 from www.disnter.htmlstweb.mit.edu.
Lanyi, A. & Lee, Y. (1999). Governance Aspect of the East Asian Financial Crisis. IRIS Center Working Paper no. 226. College Park, M.D.: IRIS Center.
Lingle, C. (2000). The Institutional Basis of Asia’s Economic Crisis, in: Richter, Frank-Jurgen (ed), The East Asian Development Model: Economic Growth, Institutional Failure and the Aftermath of the Crisis. New York: St. Martin Press.
Mankiw, G. N., Romer, D. & Weil, D.N. (1992). A Contribution to the Empirics of Economic Growth. The Quarterly Journal of Economics, Vol. 107, No. 2. pp. 407-437.
Marshall G. M. & Jaggers, K. (2009). Polity IV Project, Center for Systemic Peace and Colorado State University
Nelson, R. R. & Pack, H. (1999). The Asian Miracle and Modern Growth Theory, Economic Journal, Royal Economic Society, vol. 109(457), pages 416-36.
PRS Group, The. (2009). International Country Risk Guide dataset.
Radelet, S. and Sachs, J. (1998). The East Asian Financial Crisis: Diagnosis, Remedies and Prospects. Brookings Papers on Economic Activity, 1, pp.1-74.
Rodrik, D. (1997) TFPG Controversies, Institutions, and Economic Performance in East Asia. National Bureau of Economic Research Working Paper No. 5914.
Rodrik, D., Subramaniam, A., & Trebbi, F. (2004) Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development. Journal of Economic Growth, 9(2), pp. 131-165.
Roodman, D. (2009). How to do xtabond2: An introduction to difference and system GMM in Stata, The Stata Journal, 9 (1), pp. 86-136
Sarel, M. (1997). Growth and Productivity in ASEAN Countries. IMF Working Paper, Vol. 97/97, pp. 1-50
Senhadji, A. (2000). Sources of Economic Growth: An Extensive Growth Accounting Exercise, IMF Staff Papers, Palgrave Macmillan Journals, vol. 47(1), pages 6.
Solow, R. M. (1956). A Contribution to Theory of Economics Growth, The Quarterly Journal of Economics, 70 (1), pp. 65-94.
Young, A. (1995). The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience. The Quarterly Journal of Economics, vol. 110(3), pp. 641-80, MIT Press.
Windmeijer, F. ( 2005). A finite sample correction for the variance of linear efficient two-step GMM estimators. Journal of Econometrics 126, pp. 25–51.
World Bank (1993). The East Asian Miracle: Economic Growth and Public Policy. Oxford University Press: New York, NY.
World Bank (1998). East Asia: Road to Recovery. Washington D.C.: The World Bank.
World Bank (2009). World Banks World Development Indicators (WDI).