More Open – Better Governed? Evidence from High- and Low-Income Countries

42 Pages Posted: 27 Jan 2014 Last revised: 24 Aug 2015

See all articles by Andreas Bergh

Andreas Bergh

Research Institute of Industrial Economics (IFN); Lund University - Department of Economics

Irina Mirkina

Lund University - Department of Economics

Therese Nilsson

Research Institute of Industrial Economics (IFN); Lund University - Department of Economics

Date Written: December 15, 2013

Abstract

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.

Keywords: globalization, institutional quality, developing countries

JEL Classification: H83, F63, O11

Suggested Citation

Bergh, Andreas and Mirkina, Irina and Nilsson, Therese, More Open – Better Governed? Evidence from High- and Low-Income Countries (December 15, 2013). IFN Working Paper No. 997, Research Institute of Industrial Economics, Available at SSRN: https://ssrn.com/abstract=2385167 or http://dx.doi.org/10.2139/ssrn.2385167

Andreas Bergh

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34 2nd floor
Stockholm, SE-102 15
Sweden
0707790734 (Phone)

HOME PAGE: http://www.ifn.se/web/AndreasB

Lund University - Department of Economics ( email )

P.O. Box 7082
S-220 07
Lund
Sweden

HOME PAGE: http://www.nek.lu.se/

Irina Mirkina

Lund University - Department of Economics ( email )

P.O. Box 7082
S-220 07 Lund
Sweden

Therese Nilsson (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Lund University - Department of Economics ( email )

P.O. Box 7082
S-220 07 Lund
Sweden
+46 46 222 46 43 (Phone)

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