Economics at your fingertips  

Institutions and Economic Performance: What Can be Explained?

Simon Commander and Zlatko Nikoloski

Review of Economics and Institutions, 2011, vol. 2, issue 2

Abstract: Institutions are now widely believed to be important in explaining performance. In this paper, we analyze whether commonly used measures of institutions have any significant, measurable impact on performance, whether of countries or firms. We look at three ‘levels’ of institutions and associated conjectures. The first concerns whether the political system affects performance. The second concerns whether the business and investment environment affects the performance of countries and the third concerns whether perceived business constraints directly affect the performance of firms. In all instances, we find little evidence of a robust link between widely used measures of institutions and our indicators of performance. We consider why this might be the case and argue that mis-measurement, mis-specification, complexity and non-linearity are all relevant factors.

Keywords: institutions; economic growth; development; firm performance (search for similar items in EconPapers)
JEL-codes: D24 L21 O12 P48 (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
Requires registration. Users must be registered and log in to access full text

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Review of Economics and Institutions is currently edited by Carlo Andrea Bollino

More articles in Review of Economics and Institutions from Università di Perugia Contact information at EDIRC.
Series data maintained by Ubaldo Pizzoli ().

Page updated 2017-09-29
Handle: RePEc:pia:review:v:2:y:2011:i:2:n:3