Working Paper No. 997

More Open – Better Governed? Evidence from High- and Low-income Countries

Published: December 16, 2013Pages: 41Keywords: Globalization; Institutional quality; Developing countriesJEL-codes: H83; F63; O11
Published version

More Open – Better Governed? Evidence from High- and Low-income Countries Andreas Bergh, Irina Mirkina and Therese Nilsson


Using World Bank data on institutional quality and the KOF Globalization Index, we examine over 100 countries from 1992 to 2010 to analyze the relationship between economic and social globalization and six measures of institutional quality. Theoretically, the incentives of elites to respond to globalization by improving institutions should differ between low-income and high-income countries. Empirically, increasing economic flows and social globalization are followed by improving institutions in rich countries, while the effect is the opposite for low-income countries. Previous findings of positive effects of trade on institutional quality are likely driven by rich countries.

 

 

Andreas Bergh

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Mob: 070 779 0734
andreas.bergh@ifn.se

Therese Nilsson

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Ph: +46 46 222 4643
Mob: +46 73 396 7919
therese.nilsson@nek.l...

An Agenda for Europe

Institutional Reform for Innovation and Entrepreneurship

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The authors of this book, Niklas Elert, Magnus Henrekson and Mikael Stenkula, advise the economies of the European Union to become more entrepreneurial in promoting innovation and economic growth. The authors propose a reform strategy with respect to several aspects to achieve this goal.

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