Governance and Growth: A Simple Hypothesis Explaining Cross-Country Differences in Productivity Growth

Olson, Mancur,, Naveen Sarna and Anand Swamy

Public Choice, 2000, vol. 102, issue 3-4, 64 pages

Abstract: Cross-country evidence shows that a subset of developing countries is growing very rapidly, taking advantage of opportunities to "catch-up" at the same time that other developing countries are growing slowly. We argue that this is due to differences in the quality of governance. In particular we show that productivity growth is higher in better-governed countries. Copyright 2000 by Kluwer Academic Publishers

Date: 2000
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