Advanced

Institutions and Economic Growth in Africa: An Assessment

Hoedemakers, Lennart LU (2016) EKHM51 20161
Department of Economic History
Abstract
This paper assesses the extent to which cross country empirical data can be used to explain the impact of institutions on economic growth in Africa. It does so by first establishing a theoretical framework on economic growth, focusing particularly on New Institutional Economics, also assessing several other theories that seek to explain economic growth. Having done so this paper analyzes whether institutional change precedes changing levels of economic growth, drawing on the extensive literature to construct a quantitative model. While this paper uses cross-country data and employs proxies for institutional quality that are widely employed in previous studies - such as settler mortality, the ICRG index as well as Kaufmann's Worldwide... (More)
This paper assesses the extent to which cross country empirical data can be used to explain the impact of institutions on economic growth in Africa. It does so by first establishing a theoretical framework on economic growth, focusing particularly on New Institutional Economics, also assessing several other theories that seek to explain economic growth. Having done so this paper analyzes whether institutional change precedes changing levels of economic growth, drawing on the extensive literature to construct a quantitative model. While this paper uses cross-country data and employs proxies for institutional quality that are widely employed in previous studies - such as settler mortality, the ICRG index as well as Kaufmann's Worldwide Governance Indicators - this paper emphasizes that support for the measurable importance of institutions for economic development in Africa is weak, allows for selective data collection and possibly even data manipulation. Thus this paper concludes that research papers that emphasize the importance of institutions - or other 'deeper determinants' of economic growth - warrant thorough assessment of variables used. (Less)
Please use this url to cite or link to this publication:
author
Hoedemakers, Lennart LU
supervisor
organization
course
EKHM51 20161
year
type
H1 - Master's Degree (One Year)
subject
keywords
New Institutional Economics, Africa, Economic Growth
language
English
id
8883625
date added to LUP
2016-08-02 11:27:44
date last changed
2016-08-02 11:27:44
@misc{8883625,
  abstract     = {This paper assesses the extent to which cross country empirical data can be used to explain the impact of institutions on economic growth in Africa. It does so by first establishing a theoretical framework on economic growth, focusing particularly on New Institutional Economics, also assessing several other theories that seek to explain economic growth. Having done so this paper analyzes whether institutional change precedes changing levels of economic growth, drawing on the extensive literature to construct a quantitative model. While this paper uses cross-country data and employs proxies for institutional quality that are widely employed in previous studies - such as settler mortality, the ICRG index as well as Kaufmann's Worldwide Governance Indicators - this paper emphasizes that support for the measurable importance of institutions for economic development in Africa is weak, allows for selective data collection and possibly even data manipulation. Thus this paper concludes that research papers that emphasize the importance of institutions - or other 'deeper determinants' of economic growth - warrant thorough assessment of variables used.},
  author       = {Hoedemakers, Lennart},
  keyword      = {New Institutional Economics,Africa,Economic Growth},
  language     = {eng},
  note         = {Student Paper},
  title        = {Institutions and Economic Growth in Africa: An Assessment},
  year         = {2016},
}