Institutions, Trade, and Growth : Revisiting the Evidence
Several recent papers have attempted to identify the partial effects of trade integration and institutional quality on long-run growth using the geographical determinants of trade and the historical determinants of institutions as instruments. The...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2003/03/2191891/institutions-trade-growth-revisiting-evidence http://hdl.handle.net/10986/18286 |
| Summary: | Several recent papers have attempted to
identify the partial effects of trade integration and
institutional quality on long-run growth using the
geographical determinants of trade and the historical
determinants of institutions as instruments. The authors
show that many of the specifications in these papers are
weakly identified despite the apparently good performance of
the instruments in first-stage regressions. Consequently,
they argue that the cross-country variation in institutions,
trade, and their geographical and historical determinants is
not very informative about the partial effects of these
variables on long-run growth. |
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