Journal ArticleDOI
Africa's Growth Tragedy: Policies and Ethnic Divisions
William Easterly,Ross Levine +1 more
TLDR
This article showed that ethnic diversity helps explain cross-country differences in public policies and other economic indicators in Sub-Saharan Africa, and that high ethnic fragmentation explains a significant part of most of these characteristics.Abstract:
Explaining cross-country differences in growth rates requires not only an understanding of the link between growth and public policies, but also an understanding of why countries choose different public policies. This paper shows that ethnic diversity helps explain cross-country differences in public policies and other economic indicators. In the case of Sub-Saharan Africa, economic growth is associated with low schooling, political instability, underdeveloped financial systems, distorted foreign exchange markets, high government deficits, and insufficient infrastructure. Africa's high ethnic fragmentation explains a significant part of most of these characteristics.read more
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Journal ArticleDOI
Coercion, Co-optation , or Co-operation? : State Capacity and the Risk of Civil War, 1961 - 2004
Hanne Fjelde,Indra de Soysa +1 more
TL;DR: For example, this paper identified state capacity as a crucial determinant of civil peace and the association between wealth and peace as state capacity effects, but they have not yet analyzed the relationship between state capacity and civil peace.
Journal ArticleDOI
Why Do Firms Evade Taxes? The Role of Information Sharing and Financial Sector Outreach
TL;DR: This article showed that firms in countries with better credit information sharing systems and higher branch penetration evade taxes to a lesser degree than those in countries without such information sharing, and this effect is robust to instrumental variable analysis, controlling for firm fixed effects in a smaller panel data set of countries, and many other robustness tests.
Journal ArticleDOI
Cultural Diversity and Local Labour Markets
TL;DR: Suedekum et al. as discussed by the authors investigated the effects of cultural diversity for native employees at the local level and found that the higher diversity of high-skilled foreign employment, the higher the local wages and employment levels for natives.
Book
Voracity and Growth
TL;DR: In this paper, the authors analyze an economy that lacks a strong legal-political institutional infrastructure and is populated by multiple powerful groups, and show that a dilution in the concentration of power leads to faster growth and a less procyclical response to shocks.
Journal ArticleDOI
International Trade and Institutional Change
TL;DR: The authors analyzes the impact of international trade on the quality of institutions, such as contract enforcement, property rights, or investor protection, and presents a model in which institutional dierences play two roles: they create rents for some parties within the economy and they are a source of comparative advantage in trade.
References
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The mechanics of economic development
Abstract: This paper considers the prospects for constructing a neoclassical theory of growth and international trade that is consistent with some of the main features of economic development. Three models are considered and compared to evidence: a model emphasizing physical capital accumulation and technological change, a model emphasizing human capital accumulation through schooling, and a model emphasizing specialized human capital accumulation through learning-by-doing.
Journal ArticleDOI
On the mechanics of economic development
TL;DR: In this article, the authors consider the prospects for constructing a neoclassical theory of growth and international trade that is consistent with some of the main features of economic development, and compare three models and compared to evidence.
Posted Content
Law and Finance
Rafael La Porta,Rafael La Porta,Florencio Lopez de Silanes,Florencio Lopez de Silanes,Andrei Shleifer,Andrei Shleifer,Robert W. Vishny,Robert W. Vishny +7 more
TL;DR: This paper examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common law countries generally have the best, and French civil law countries the worst, legal protections of investors.
ReportDOI
Economic Growth in a Cross Section of Countries
TL;DR: For 98 countries in the period 1960-1985, the growth rate of real per capita GDP is positively related to initial human capital (proxied by 1960 school-enrollment rates) and negatively related to the initial (1960) level as mentioned in this paper.
Journal ArticleDOI
Finance and Growth: Schumpeter Might Be Right
TL;DR: In this paper, the authors examined a cross-section of about 80 countries for the period 1960-89 and found that various measures of financial development are strongly associated with both current and later rates of economic growth.