Measurement, Evolution, Determinants and Consequences of State Capacity: A Review of Recent Research

Journal of Economic Surveys, Forthcoming

32 Pages Posted: 7 Mar 2014

See all articles by Antonio Savoia

Antonio Savoia

University of Manchester - Global Development Institute

Kunal Sen

University of Manchester

Multiple version iconThere are 2 versions of this paper

Date Written: March 6, 2014

Abstract

There is increasing realisation that state capacity is a fundamental ingredient for effective governance, and is a crucial element of long-run economic development. This paper offers an overview of the strengths and limitations in current empirical research on the measurement of state capacity. The paper also surveys the fast emerging literature on the determinants and effects of state capacity. We argue that existing measures on governance quality used in cross-national research can be usefully exploited to capture different aspects of state capacity, and show that post the end of the Cold War, developing economies have experienced improvements in legal, administrative and bureaucratic capacity, but the gap with advanced economies is still wide. Future research should address the short temporal coverage of available measures of state capacity, as well as providing a systematic quantitative assessment of the determinants of capacity and of its effects on development outcomes, such as health and education, which have not received sufficient scrutiny.

Keywords: state capacity, governance, economic development, measurement, institutions

JEL Classification: O4, P5, N4

Suggested Citation

Savoia, Antonio and Sen, Kunal, Measurement, Evolution, Determinants and Consequences of State Capacity: A Review of Recent Research (March 6, 2014). Journal of Economic Surveys, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2405498

Antonio Savoia (Contact Author)

University of Manchester - Global Development Institute ( email )

Arthur Lewis building
Oxford Road
Manchester, M13 9PL
United Kingdom

Kunal Sen

University of Manchester ( email )

Oxford Road
Manchester, M13 9PL
United Kingdom

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