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WHY DON'T POOR COUNTRIES CATCH UP? A CROSS‐NATIONAL TEST OF AN INSTITUTIONAL EXPLANATION
Abstract
Early neoclassical analyses predicted that poor countries would grow faster than wealthy countries, because of technological advances and diminishing returns to capital in the latter. The reverse has occurred: poor countries are falling back rather than catching up. We suggest here that deficient institutions underlie this divergence. Employing various indicators of institutional quality, including the rule of law, the pervasiveness of corruption, and the risk of expropriation and contract repudiation, we show that the ability of poor countries to catch up is determined in large part by the institutional environment in which economic activity in these countries takes place. (JEL O00, O10)
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Citations
Cites
Endogenous Technological Change
Romer, P. M. (1990) · Journal of Political Economy · doi:10.1086/261725 · Cited by 17,711
Cited by
Does Social Capital Have an Economic Payoff? A Cross-Country Investigation
Knack, S., & Keefer, P. (1997) · The Quarterly Journal of Economics · doi:10.1162/003355300555475 · Cited by 7,484
Self-citationThe institutional environment for economic growth
Henisz, W. J. (2000) · Economics & Politics · doi:10.1111/1468-0343.00066 · Cited by 1,651
International business responses to institutional voids
Doh, J., Rodrigues, S., Saka-Helmhout, A., & Makhija, M. (2017) · Journal of International Business Studies · doi:10.1057/s41267-017-0074-z · Cited by 596
Democracy and Economic Growth: A Historical Perspective
Gerring, J., Bond, P., Barndt, W. T., & Moreno, C. (2005) · World Politics · doi:10.1353/wp.2006.0002 · Cited by 580
Hazards of Expropriation: Tenure Insecurity and Investment in Rural China
Jacoby, H. G., Li, G., & Rozelle, S. (2002) · American Economic Review · doi:10.1257/000282802762024575 · Cited by 575
Metadata
- Authors
- KEEFER, P., & KNACK, S.
- Venue
- Economic Inquiry
- Publisher
- Wiley
- Published
- 1997-07
- Volume
- 35
- Issue
- 3
- Pages
- 590-602
- ISSN
- 0043-3640 (ISSN-L)
- 0095-2583
- 1465-7295
- OpenAlex
- W2081494404
- Cited by
- 827
- References
- 1
- FWCI
- 37.66
- Type
- journal article
- Language
- en
- Open access
- closed
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- KEEFER, P., & KNACK, S. (1997). WHY DON'T POOR COUNTRIES CATCH UP? A CROSS‐NATIONAL TEST OF AN INSTITUTIONAL EXPLANATION. Economic Inquiry. https://doi.org/10.1111/j.1465-7295.1997.tb02035.x
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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