Open For Business? Institutions, Business Environment and Economic Development

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Title: Open For Business? Institutions, Business Environment and Economic Development
Authors: Gillanders, Robert
Whelan, Karl
Permanent link: http://hdl.handle.net/10197/6372
Date: Dec-2010
Abstract: Recent years have seen a significant focus in the literature on growth and development on the idea that legal and political institutions are the key determinant of economic development. The main finding of this paper is that the focus on the primacy of legal and political institutions may be misplaced and that business-friendly economic policies (proxied for here by the World Bank’s Doing Business indicator) are the key determinant of the level of income per capita. We find that a country’s Doing Business rank dominates a range of measures of legal and political institutional quality as an explanatory variable for income per capita. We also find the Doing Business rank to be a key explanatory variable for economic growth and that previous findings assigning a significant role to educational attainment are not robust to the inclusion of this new indicator in growth regressions.
Funding Details: Irish Research Council for the Humanities and Social Sciences
Type of material: Working Paper
Publisher: University College Dublin. School of Economics
Keywords: Determinants of development;Economic policy;Economic growth
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Working Papers & Policy Papers

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