The growth effects of institutional instability
(2012) In Journal of Institutional Economics 8(2). p.187-224- Abstract
- We study the effects of institutional instability on growth. Using principal components analysis, we construct measures of institutional quality and instability from the political risk index of the International Country Risk Guide. A panel-data analysis of 132 countries during 1984–2004 reveals that institutional quality, especially with regard to the legal system and the protection of property rights, is positively linked to growth. As for institutional instability, we find evidence of a positive relationship in rich countries but a negative link in poor countries, suggesting that instability may reduce problems of institutional sclerosis in the former and that instability primarily entails an increase in transactions costs and... (More)
- We study the effects of institutional instability on growth. Using principal components analysis, we construct measures of institutional quality and instability from the political risk index of the International Country Risk Guide. A panel-data analysis of 132 countries during 1984–2004 reveals that institutional quality, especially with regard to the legal system and the protection of property rights, is positively linked to growth. As for institutional instability, we find evidence of a positive relationship in rich countries but a negative link in poor countries, suggesting that instability may reduce problems of institutional sclerosis in the former and that instability primarily entails an increase in transactions costs and uncertainty in the latter. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/2372322
- author
- Niclas, Bergggren ; Bergh, Andreas LU and Christian, Bjørnskov
- organization
- publishing date
- 2012
- type
- Contribution to journal
- publication status
- published
- subject
- in
- Journal of Institutional Economics
- volume
- 8
- issue
- 2
- pages
- 187 - 224
- publisher
- Cambridge University Press
- external identifiers
-
- wos:000304892000003
- scopus:84867469257
- ISSN
- 1744-1382
- DOI
- 10.1017/S1744137411000488
- language
- English
- LU publication?
- yes
- id
- b2229393-3140-414f-93a3-be60c4621edf (old id 2372322)
- date added to LUP
- 2016-04-01 09:55:20
- date last changed
- 2022-04-12 00:07:32
@article{b2229393-3140-414f-93a3-be60c4621edf,
abstract = {{We study the effects of institutional instability on growth. Using principal components analysis, we construct measures of institutional quality and instability from the political risk index of the International Country Risk Guide. A panel-data analysis of 132 countries during 1984–2004 reveals that institutional quality, especially with regard to the legal system and the protection of property rights, is positively linked to growth. As for institutional instability, we find evidence of a positive relationship in rich countries but a negative link in poor countries, suggesting that instability may reduce problems of institutional sclerosis in the former and that instability primarily entails an increase in transactions costs and uncertainty in the latter.}},
author = {{Niclas, Bergggren and Bergh, Andreas and Christian, Bjørnskov}},
issn = {{1744-1382}},
language = {{eng}},
number = {{2}},
pages = {{187--224}},
publisher = {{Cambridge University Press}},
series = {{Journal of Institutional Economics}},
title = {{The growth effects of institutional instability}},
url = {{http://dx.doi.org/10.1017/S1744137411000488}},
doi = {{10.1017/S1744137411000488}},
volume = {{8}},
year = {{2012}},
}