The Primacy of Institutions Reconsidered : Direct Income Effects of Malaria Prevalence

Some recent empirical studies deny any direct effect of geography on development and conclude that institutions dominate all other potential determinants of development. An alternative view emphasizes that geographic factor such as disease ecology,...

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Main Authors:	Carstensen, Kai, Gundlach, Erich
Format:	Journal Article
Language:	English en_US
Published:	Oxford University Press on behalf of the World Bank 2013
Subjects:	ACCOUNTABILITY ADULT POPULATION ANOPHELES MOSQUITO ANOPHELES MOSQUITOES ANOPHELINE MOSQUITO BAYESIAN INFORMATION CRITERION BENCHMARK BILATERAL TRADE BURDEN OF MALARIA BUREAUCRATIC QUALITY CALCULATION CAUSAL EFFECT CAUSAL EFFECTS CD CLEAN WATER COMPARATIVE ADVANTAGES COMPLICATIONS CONFIDENCE INTERVALS CORRUPTION DATA QUALITY DEPENDENCY RATIO DEPENDENCY RATIOS DEVELOPMENT POLICIES DISEASE DISEASE BURDEN ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC CONDITIONS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC HISTORIANS ECONOMIC HISTORY ECONOMIC INTEGRATION ECONOMIC PERFORMANCE ECONOMIC POLICIES ECONOMIC RESEARCH ENDOGENOUS VARIABLES EQUATIONS EXOGENOUS VARIABLES FACTOR ENDOWMENTS FERTILITY FIXED COSTS FOREIGN AID FOREIGN DIRECT INVESTMENT FOREIGN INVESTORS GDP GDP PER CAPITA GOOD GOVERNANCE GOVERNANCE INDICATOR GOVERNANCE INDICATORS GOVERNANCE QUALITY GOVERNMENT EFFECTIVENESS GROSS DOMESTIC PRODUCT HEALTH INTERVENTIONS HIGH FERTILITY RATE HOME COUNTRIES HUMAN CAPITAL HYGIENE ILLNESS IMPACT OF MALARIA INCOME INCOME DISTRIBUTION INCOME LEVEL INDUSTRIAL REVOLUTION INFECTION INFECTIONS INSTITUTIONAL FRAMEWORK INSTITUTIONAL QUALITY INSTRUMENTAL VARIABLES INTERNATIONAL TRADE LABOR FORCE LEVEL OF DEVELOPMENT LINEAR MODELS LONGEVITY LOWER FERTILITY MACROECONOMIC VARIABLES MALARIA MALARIA INFECTION MALARIA INFECTIONS MALARIA TRANSMISSION MONETARY ECONOMICS MORTALITY NATURAL RESOURCES NEGATIVE EFFECTS OUTPUT PER CAPITA PANDEMIC PER CAPITA INCOME PHYSICAL GEOGRAPHY POLITICAL ECONOMY POLITICAL STABILITY POOR HEALTH POPULATION SIZE PRECISION PREVALENCE PRIVATE PROPERTY PROBABILITY PROPERTY RIGHTS PUBLIC HEALTH PURCHASING POWER PURCHASING POWER PARITY REAL GDP REASONING REGULATORY QUALITY RESPECT REVERSE CAUSALITY RISK OF INFECTION RISK OF MALARIA RULE OF LAW SAMPLE SIZE SCIENTISTS SICKLE CELL ANEMIA SKILL LEVEL SOCIAL BURDEN SPECIES STANDARD ERRORS STATISTICAL INFERENCE STATISTICAL SIGNIFICANCE SURVIVAL RATE THEOREMS TRANSMISSION OF MALARIA TREATMENT TROPICAL DISEASES TROPICAL MEDICINE UNEQUAL DISTRIBUTION VALIDITY VECTORS WEALTH WORKFORCE
Online Access:	http://documents.worldbank.org/curated/en/2006/09/17760693/primacy-institutions-reconsidered-direct-income-effects-malaria-prevalence http://hdl.handle.net/10986/16439

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spelling	okr-10986-164392021-04-23T14:03:29Z The Primacy of Institutions Reconsidered : Direct Income Effects of Malaria Prevalence Carstensen, Kai Gundlach, Erich ACCOUNTABILITY ADULT POPULATION ANOPHELES MOSQUITO ANOPHELES MOSQUITOES ANOPHELINE MOSQUITO BAYESIAN INFORMATION CRITERION BENCHMARK BILATERAL TRADE BURDEN OF MALARIA BUREAUCRATIC QUALITY CALCULATION CAUSAL EFFECT CAUSAL EFFECTS CD CLEAN WATER COMPARATIVE ADVANTAGES COMPLICATIONS CONFIDENCE INTERVALS CORRUPTION DATA QUALITY DEPENDENCY RATIO DEPENDENCY RATIOS DEVELOPMENT POLICIES DISEASE DISEASE BURDEN ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC CONDITIONS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC HISTORIANS ECONOMIC HISTORY ECONOMIC INTEGRATION ECONOMIC PERFORMANCE ECONOMIC POLICIES ECONOMIC RESEARCH ENDOGENOUS VARIABLES EQUATIONS EXOGENOUS VARIABLES FACTOR ENDOWMENTS FERTILITY FIXED COSTS FOREIGN AID FOREIGN DIRECT INVESTMENT FOREIGN INVESTORS GDP GDP PER CAPITA GOOD GOVERNANCE GOVERNANCE INDICATOR GOVERNANCE INDICATORS GOVERNANCE QUALITY GOVERNMENT EFFECTIVENESS GROSS DOMESTIC PRODUCT HEALTH INTERVENTIONS HIGH FERTILITY RATE HOME COUNTRIES HUMAN CAPITAL HYGIENE ILLNESS IMPACT OF MALARIA INCOME INCOME DISTRIBUTION INCOME LEVEL INDUSTRIAL REVOLUTION INFECTION INFECTIONS INSTITUTIONAL FRAMEWORK INSTITUTIONAL QUALITY INSTRUMENTAL VARIABLES INTERNATIONAL TRADE LABOR FORCE LEVEL OF DEVELOPMENT LINEAR MODELS LONGEVITY LOWER FERTILITY MACROECONOMIC VARIABLES MALARIA MALARIA INFECTION MALARIA INFECTIONS MALARIA TRANSMISSION MONETARY ECONOMICS MORTALITY NATURAL RESOURCES NEGATIVE EFFECTS OUTPUT PER CAPITA PANDEMIC PER CAPITA INCOME PHYSICAL GEOGRAPHY POLITICAL ECONOMY POLITICAL STABILITY POOR HEALTH POPULATION SIZE PRECISION PREVALENCE PRIVATE PROPERTY PROBABILITY PROPERTY RIGHTS PUBLIC HEALTH PURCHASING POWER PURCHASING POWER PARITY REAL GDP REASONING REGULATORY QUALITY RESPECT REVERSE CAUSALITY RISK OF INFECTION RISK OF MALARIA RULE OF LAW SAMPLE SIZE SCIENTISTS SICKLE CELL ANEMIA SKILL LEVEL SOCIAL BURDEN SPECIES STANDARD ERRORS STATISTICAL INFERENCE STATISTICAL SIGNIFICANCE SURVIVAL RATE THEOREMS TRANSMISSION OF MALARIA TREATMENT TROPICAL DISEASES TROPICAL MEDICINE UNEQUAL DISTRIBUTION VALIDITY VECTORS WEALTH WORKFORCE Some recent empirical studies deny any direct effect of geography on development and conclude that institutions dominate all other potential determinants of development. An alternative view emphasizes that geographic factor such as disease ecology, as proxied by the prevalence of malaria, may have a large negative effect on income, independent of the quality of a country's institutions. For instance, pandemic malaria may create a large economic burden beyond medical costs and forgone earnings by affecting household behavior and such macroeconomic variables as international investment and trade. After controlling for institutional quality, malaria prevalence is found to cause quantitatively important negative effects on income. The robustness of this finding is checked by employing alternative instrumental variables, tests of over-identification restrictions, and tests of the validity of the point estimates and standard errors in the presence of weak instruments. The baseline findings appear to be robust to using alternative specifications, instrumentations, and samples. The reported estimates suggest that good institutions may be necessary but not sufficient for generating a persistent process of successful economic development. 2013-12-20T20:57:59Z 2013-12-20T20:57:59Z 2006-06-08 http://documents.worldbank.org/curated/en/2006/09/17760693/primacy-institutions-reconsidered-direct-income-effects-malaria-prevalence World Bank Economic Review doi:10.1093/wber/lhl001 http://hdl.handle.net/10986/16439 English en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article Publications & Research :: Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ACCOUNTABILITY ADULT POPULATION ANOPHELES MOSQUITO ANOPHELES MOSQUITOES ANOPHELINE MOSQUITO BAYESIAN INFORMATION CRITERION BENCHMARK BILATERAL TRADE BURDEN OF MALARIA BUREAUCRATIC QUALITY CALCULATION CAUSAL EFFECT CAUSAL EFFECTS CD CLEAN WATER COMPARATIVE ADVANTAGES COMPLICATIONS CONFIDENCE INTERVALS CORRUPTION DATA QUALITY DEPENDENCY RATIO DEPENDENCY RATIOS DEVELOPMENT POLICIES DISEASE DISEASE BURDEN ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC CONDITIONS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC HISTORIANS ECONOMIC HISTORY ECONOMIC INTEGRATION ECONOMIC PERFORMANCE ECONOMIC POLICIES ECONOMIC RESEARCH ENDOGENOUS VARIABLES EQUATIONS EXOGENOUS VARIABLES FACTOR ENDOWMENTS FERTILITY FIXED COSTS FOREIGN AID FOREIGN DIRECT INVESTMENT FOREIGN INVESTORS GDP GDP PER CAPITA GOOD GOVERNANCE GOVERNANCE INDICATOR GOVERNANCE INDICATORS GOVERNANCE QUALITY GOVERNMENT EFFECTIVENESS GROSS DOMESTIC PRODUCT HEALTH INTERVENTIONS HIGH FERTILITY RATE HOME COUNTRIES HUMAN CAPITAL HYGIENE ILLNESS IMPACT OF MALARIA INCOME INCOME DISTRIBUTION INCOME LEVEL INDUSTRIAL REVOLUTION INFECTION INFECTIONS INSTITUTIONAL FRAMEWORK INSTITUTIONAL QUALITY INSTRUMENTAL VARIABLES INTERNATIONAL TRADE LABOR FORCE LEVEL OF DEVELOPMENT LINEAR MODELS LONGEVITY LOWER FERTILITY MACROECONOMIC VARIABLES MALARIA MALARIA INFECTION MALARIA INFECTIONS MALARIA TRANSMISSION MONETARY ECONOMICS MORTALITY NATURAL RESOURCES NEGATIVE EFFECTS OUTPUT PER CAPITA PANDEMIC PER CAPITA INCOME PHYSICAL GEOGRAPHY POLITICAL ECONOMY POLITICAL STABILITY POOR HEALTH POPULATION SIZE PRECISION PREVALENCE PRIVATE PROPERTY PROBABILITY PROPERTY RIGHTS PUBLIC HEALTH PURCHASING POWER PURCHASING POWER PARITY REAL GDP REASONING REGULATORY QUALITY RESPECT REVERSE CAUSALITY RISK OF INFECTION RISK OF MALARIA RULE OF LAW SAMPLE SIZE SCIENTISTS SICKLE CELL ANEMIA SKILL LEVEL SOCIAL BURDEN SPECIES STANDARD ERRORS STATISTICAL INFERENCE STATISTICAL SIGNIFICANCE SURVIVAL RATE THEOREMS TRANSMISSION OF MALARIA TREATMENT TROPICAL DISEASES TROPICAL MEDICINE UNEQUAL DISTRIBUTION VALIDITY VECTORS WEALTH WORKFORCE
spellingShingle	ACCOUNTABILITY ADULT POPULATION ANOPHELES MOSQUITO ANOPHELES MOSQUITOES ANOPHELINE MOSQUITO BAYESIAN INFORMATION CRITERION BENCHMARK BILATERAL TRADE BURDEN OF MALARIA BUREAUCRATIC QUALITY CALCULATION CAUSAL EFFECT CAUSAL EFFECTS CD CLEAN WATER COMPARATIVE ADVANTAGES COMPLICATIONS CONFIDENCE INTERVALS CORRUPTION DATA QUALITY DEPENDENCY RATIO DEPENDENCY RATIOS DEVELOPMENT POLICIES DISEASE DISEASE BURDEN ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC CONDITIONS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC HISTORIANS ECONOMIC HISTORY ECONOMIC INTEGRATION ECONOMIC PERFORMANCE ECONOMIC POLICIES ECONOMIC RESEARCH ENDOGENOUS VARIABLES EQUATIONS EXOGENOUS VARIABLES FACTOR ENDOWMENTS FERTILITY FIXED COSTS FOREIGN AID FOREIGN DIRECT INVESTMENT FOREIGN INVESTORS GDP GDP PER CAPITA GOOD GOVERNANCE GOVERNANCE INDICATOR GOVERNANCE INDICATORS GOVERNANCE QUALITY GOVERNMENT EFFECTIVENESS GROSS DOMESTIC PRODUCT HEALTH INTERVENTIONS HIGH FERTILITY RATE HOME COUNTRIES HUMAN CAPITAL HYGIENE ILLNESS IMPACT OF MALARIA INCOME INCOME DISTRIBUTION INCOME LEVEL INDUSTRIAL REVOLUTION INFECTION INFECTIONS INSTITUTIONAL FRAMEWORK INSTITUTIONAL QUALITY INSTRUMENTAL VARIABLES INTERNATIONAL TRADE LABOR FORCE LEVEL OF DEVELOPMENT LINEAR MODELS LONGEVITY LOWER FERTILITY MACROECONOMIC VARIABLES MALARIA MALARIA INFECTION MALARIA INFECTIONS MALARIA TRANSMISSION MONETARY ECONOMICS MORTALITY NATURAL RESOURCES NEGATIVE EFFECTS OUTPUT PER CAPITA PANDEMIC PER CAPITA INCOME PHYSICAL GEOGRAPHY POLITICAL ECONOMY POLITICAL STABILITY POOR HEALTH POPULATION SIZE PRECISION PREVALENCE PRIVATE PROPERTY PROBABILITY PROPERTY RIGHTS PUBLIC HEALTH PURCHASING POWER PURCHASING POWER PARITY REAL GDP REASONING REGULATORY QUALITY RESPECT REVERSE CAUSALITY RISK OF INFECTION RISK OF MALARIA RULE OF LAW SAMPLE SIZE SCIENTISTS SICKLE CELL ANEMIA SKILL LEVEL SOCIAL BURDEN SPECIES STANDARD ERRORS STATISTICAL INFERENCE STATISTICAL SIGNIFICANCE SURVIVAL RATE THEOREMS TRANSMISSION OF MALARIA TREATMENT TROPICAL DISEASES TROPICAL MEDICINE UNEQUAL DISTRIBUTION VALIDITY VECTORS WEALTH WORKFORCE Carstensen, Kai Gundlach, Erich The Primacy of Institutions Reconsidered : Direct Income Effects of Malaria Prevalence
description	Some recent empirical studies deny any direct effect of geography on development and conclude that institutions dominate all other potential determinants of development. An alternative view emphasizes that geographic factor such as disease ecology, as proxied by the prevalence of malaria, may have a large negative effect on income, independent of the quality of a country's institutions. For instance, pandemic malaria may create a large economic burden beyond medical costs and forgone earnings by affecting household behavior and such macroeconomic variables as international investment and trade. After controlling for institutional quality, malaria prevalence is found to cause quantitatively important negative effects on income. The robustness of this finding is checked by employing alternative instrumental variables, tests of over-identification restrictions, and tests of the validity of the point estimates and standard errors in the presence of weak instruments. The baseline findings appear to be robust to using alternative specifications, instrumentations, and samples. The reported estimates suggest that good institutions may be necessary but not sufficient for generating a persistent process of successful economic development.
format	Publications & Research :: Journal Article
author	Carstensen, Kai Gundlach, Erich
author_facet	Carstensen, Kai Gundlach, Erich
author_sort	Carstensen, Kai
title	The Primacy of Institutions Reconsidered : Direct Income Effects of Malaria Prevalence
title_short	The Primacy of Institutions Reconsidered : Direct Income Effects of Malaria Prevalence
title_full	The Primacy of Institutions Reconsidered : Direct Income Effects of Malaria Prevalence
title_fullStr	The Primacy of Institutions Reconsidered : Direct Income Effects of Malaria Prevalence
title_full_unstemmed	The Primacy of Institutions Reconsidered : Direct Income Effects of Malaria Prevalence
title_sort	primacy of institutions reconsidered : direct income effects of malaria prevalence
publisher	Oxford University Press on behalf of the World Bank
publishDate	2013
url	http://documents.worldbank.org/curated/en/2006/09/17760693/primacy-institutions-reconsidered-direct-income-effects-malaria-prevalence http://hdl.handle.net/10986/16439
_version_	1764433435360755712

The Primacy of Institutions Reconsidered : Direct Income Effects of Malaria Prevalence

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