Revisiting the Relevance of the World Bank's Country Policy and Institutional Assessment on Economic Growth
We revisit the relevance of the World Bank’s Country Policy and Institutional Assessment (CPIA)against growth performance, with attention to possible biases arising from qualitative andquantitative changes in the CPIA methodology. The CPIA, introdu...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/342391544127883339/Revisiting-the-Relevance-of-the-World-Banks-Country-Policy-and-Institutional-Assessment-CPIA-on-Economic-Growth http://hdl.handle.net/10986/31060 |
| Summary: | We revisit the relevance of the World
Bank’s Country Policy and Institutional Assessment
(CPIA)against growth performance, with attention to possible
biases arising from qualitative andquantitative changes in
the CPIA methodology. The CPIA, introduced in the late
1970s, had aseries of extensive revisions in the late 1980s
and the early 1990s, placing more emphasis oninstitutional
capacity and social policies. We reexamine a claim by
previous studies that the CPIAis weakly relevant for
economic performance, by running cross-country growth
regressions with apanel dataset covering 146 countries
between 1995 and 2015, a period over which the CPIA
iscomparable. By addressing the possible biases arising from
the methodological changes, we showthat the CPIA is a good
predictor for future growth. |
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