Unbundled institutions, human capital and growth

Sambit Bhattacharyya

    Research output: Contribution to journalArticle

    Abstract

    We investigate the partial effects of institutions and human capital on growth. We find that cross-country regressions of the log-level of per capita GDP on instrumented measures of institutions and schooling are uninformative about the relative importance of institutions and human capital in the long run because of multicollinearity problems. Using dynamic panel regressions we show that both institutions and human capital have significant effects on growth. Using Rodrik's [Rodrik, D., 2005. Growth strategies. Handbook of Economic Growth 1 (1), 967-1014] four-way partition of institutions, we also unbundle institutions. We show that strong market creating institutions and market stabilising institutions are growth enhancing. Market regulating institutions matter up to a certain extent and market legitimising institutions does not seem to matter. Journal of Comparative Economics 37 (1) (2009) 106-120.
    Original languageEnglish
    Pages (from-to)106-120
    JournalJournal of Comparative Economics
    Volume37
    DOIs
    Publication statusPublished - 2009

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