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DOES THE IMPACT OF INSTITUTIONAL QUALITY ON ECONOMIC GROWTH DEPEND ON INITIAL INCOME LEVEL?

José Aixalá and Gema Fabro

Economic Affairs, 2008, vol. 28, issue 3, 45-49

Abstract: The aim of this paper is to determine the most adequate institutional variables to introduce into a growth model, depending on the income levels of countries. The results show that, for rich countries, the rule of law is fundamental while, for poor countries, it is control of corruption. This has important implications for any agenda of institutional reform in either type of country.

Date: 2008
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https://doi.org/10.1111/j.1468-0270.2008.00844.x

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