The role of institutions in economic development

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this paper is to explore the alleged link between institutional quality and economic performance in 27 Sub-Saharan Africa (SSA) countries during the period 1984-2003. Design/methodology/approach -Four institutions' quality indicators, namely government stability, corruption, ethnic tensions and socioeconomic conditions, along with other control and policy variables, are employed in a panel data analysis. Findings -The institutional variables assume a key role in the process of economic development whereas the control variables display a limited effect. Thus, the "conventional variables" of economic theory may not be able to fully explain the SSA experience. Research limitations/implications -Future research efforts should explore how the vast changes experienced by the countries in that region influenced their economic evolution during the last decades.Practical implications -Policy makers should primarily focus on improving institutional quality, which is likely to positively affect economic performance in SSA countries. Social implications -Improving institutional infrastructure (enhancing rule of law and quality regulation, improving contract enforcement, securing property rights and reducing uncertainty) play a key role in delivering long-run economic development and social prosperity.

Value-added tax and economic efficiency: Role of country governance

“…High institutional quality is crucial because it leads to better improvements to challenge the existing technology and products whilst at the same time allow them to gain profit from their inventions and help to promote technological change and innovations. This is vital for economic efficiency (Daron Acemoglu et al 2008;Rasha Hashim Osman, Constantinos Alexiou and Persefoni Tsaliki 2012).…”

Institutions in the development of Sub-Saharan African countries in 2004–2019

“…In the literature, institutions play a significant role in growth and development processes (Acemoglu & Robinson, 2013;North, 1990), in particular contributing to understanding those processes in developing countries (Acemoglu & Robinson, 2013;Easterly et al, 2004;Osman et al, 2011;Świerczyńska & Kryszak, 2019). However, there is no consensus on a particular set of institutions that significantly influence development processes in the S-SA countries.…”

An Inquiry into Households’ Confidence Levels in Various Institutions in India: A Temporal Assessment from the IHDS

“…Rodrik (2000) highlighted that democracy helps build better institutions. On account of the role of institutions in shaping economic performance, numerous studies have attributed differences in economic performance to differences in institutional quality (Acemoglu & Robinson, 2008; Besley & Ghatak, 2010; Christensen & Lægreid, 2005; Commander & Nikolski, 2010; North, 1990; North, 1991) Osman et al (2012) examined the relationship between institutional quality and economic performance in 27 sub-Saharan African countries and concluded that improving the institutional infrastructure plays a key role in delivering long-run economic development and social prosperity.…”

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This study attempts to assess the variations in households' confidence levels in various sociopolitical institutions with varying socioeconomic and cultural characteristics across major Indian states based on two rounds of the India Human Development Survey (IHDS-I, 2004(IHDS-I, -2005 IHDS-II, 2011-2012. It traces the presence of a lower confidence level of households in governance institutions compared with other institutions, implying a deficit of households' confidence in this component against the overall confidence score, which marginally improves over time.

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