EconStor >
Institut für Weltwirtschaft (IfW), Kiel >
Kieler Arbeitspapiere, IfW >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/3964
  
Title:Two views on institutions and development: The grand transition vs. the primacy of institutions PDF Logo
Authors:Paldam, Martin
Gundlach, Erich
Issue Date:2007
Series/Report no.:Kieler Arbeitspapiere 1315
Abstract:The Grand Transition (GT) view claims that economic development is causal to institutional development, and that many institutional changes can be understood as transitions occurring at roughly the same level (zones) of development. The Primacy of Institutions (PoI) view claims that economic development is a consequence of an exogenous selection of institutions. Our survey of the empirical evidence and our own estimates reveal that it is easy to find con-vincing evidence supporting either of the two views. Property rights do affect development as suggested by the PoI. However, democracy is mainly an effect of development as suggested by the GT. We conclude that the empirical results are far too mixed to allow for a robust assessment that one of the two views is true and the other false. This finding implies that focusing on institutional development is unlikely to be successful as the key strategy for the economic development of poor countries.
Subjects:Grand transition
Primacy of institutions
Democracy
Corruption
Development
JEL:O1
B25
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW
Kieler Arbeitspapiere, IfW

Files in This Item:
File Description SizeFormat
kap1315.pdf774 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/3964

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.