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Geography versus Institutions: New Perspectives on the Growth of Africa and the Middle East

Olivier Parent and Abdallah Zouache

Journal of Institutional and Theoretical Economics (JITE), 2012, vol. 168, issue 3, 488-518

Abstract: This article examines the growth performance of Africa and the Middle East for the period 1990-2005. It employs a Bayesian model-averaging method that constructs estimates as a weighted average of spatial autoregressive estimates for every possible combination of included variables. One of the results is that the inclusion of spatial dependences has a direct impact on the determinants of growth in Africa and the Middle East. A main contribution of this article is to consider geographical effects in a more flexible way, which allows an enriched comprehension of the role of institutional factors in explaining low economic development.

JEL-codes: O11 O15 C11 (search for similar items in EconPapers)
Date: 2012
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