INSTITUTIONS AND ECONOMIC DEVELOPMENT: DISENTANGLING THE ROLE OF CONTRACTING AND PROPERTY RIGHTS INSTITUTIONS

Michael Lobsiger () and Marc Zahner
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Michael Lobsiger: University of Bern
Marc Zahner: University of Bern

Journal of Economic Development, 2012, vol. 37, issue 2, 1-34

Abstract: This paper aims at estimating the effect of different types of institutions on economic development. To tackle the endogeneity problem that is prevalent, an identification strategy exploiting the heteroskedasticity in the data is used. This also allows to analyze the reverse effect, running from economic development to institutions. In a sample of about 100 countries, an impact of property rights institutions but not contracting institutions on economic development is detected. Furthermore, the results suggest that a higher level of economic development improves contracting institutions, but not property rights institutions.

Keywords: Economic Development; Institution; Property Rights (search for similar items in EconPapers)
JEL-codes: O11 O43 P14 P16 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:jed:journl:v:37:y:2012:i:2:p:1-34

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