The Link Between Fundamentals and Proximate Factors in Development
Wolfgang Keller () and
Carol Shiue ()
No 9883, CEPR Discussion Papers from C.E.P.R. Discussion Papers
The paper introduces a framework for studying the hierarchy of growth factors, from deep to more immediate. The specific setting we examine is 18th and 19th century Germany, when institutional changes introduced by reforms and transportation improvements converged to create city growth. We assess the impact of institutions on growth by allowing two ways for institutions to affect growth. Institutions can directly affect growth, or it can impact on trade, which in turn affects growth. Once we separately quantify the link from institutions to trade, and trade to growth, the independent effect of institutions on growth is small. This suggests that part of what is often understood as trade's effect on growth can be attributed to institutional change. It is straightforward to apply this framework to other settings.
Keywords: growth; institutions; trade (search for similar items in EconPapers)
JEL-codes: F1 O1 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-gro and nep-his
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at firstname.lastname@example.org
Working Paper: The Link Between Fundamentals and Proximate Factors in Development (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:9883
Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=9883
Access Statistics for this paper
More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().