More Open – Better Governed? Evidence from High- and Low-income Countries
Author
Summary, in English
Using World Bank data on institutional quality and the KOF Globalization Index, we examine over 100 countries from 1992 to 2010 to analyze the relationship between economic and social globalization and six measures of institutional quality. Theoretically, the incentives of elites to respond to globalization by improving institutions should differ between low-income and high-income countries. Empirically, increasing economic flows and social globalization are followed by improving institutions in rich countries, while the effect is the opposite for low-income countries. Previous findings of positive effects of trade on institutional quality are likely driven by rich countries.
Publishing year
2013
Language
English
Publication/Series
IFN Working Paper
Issue
997
Links
Document type
Working paper
Publisher
Research Institute of Industrial Economics, Stockholm
Topic
- Economics
- Economic History
Status
Published