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Spatial Spillover of Governance and Institutional Quality: A Spatial Econometric Approach

Hossein Mirshojaeian Hosseini and Shinji Kaneko

No 2-3, IDEC DP2 Series from Hiroshima University, Graduate School for International Development and Cooperation (IDEC)

Abstract: The failure of Washington consensus increased the attention of researchers and policymakers on improving institutional quality of countries. Different empirical studies have been done to find determinants of institutional quality especially at global scales. This paper represents a complementary approach on previous efforts by developing spatial spillover of governance as a determinant of institutional quality. In fact, this paper attempts to answer to the question: how much can the institutional quality of neighboring countries explain good governance of a country and what is the share of this variable among the other determinants? To answer these questions, spatial econometric approach is adopted. Paper reveals that spatial governance spillover can explain about 20% of governance quality of countries and consequently is one of the serous determinants of institutional quality when the concept of contiguity gets wider than land borders.

Keywords: Institutional quality; Governance spillover; Spatial econometrics (search for similar items in EconPapers)
JEL-codes: C31 C52 H11 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2012-01
New Economics Papers: this item is included in nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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