Tuesday, February 23, 2010
Which institutions matter most for growth?
Voxeu.org has an interesting paper on it here. It argues that "How much do institutions matter? This column provides a new insight into measuring their effects, suggesting that a survey of managers’ perceptions of the impact of institutions should be used as an estimate of the effect. It finds that the combined impact of improving public inputs in low-income countries to their level in high-income ones is equivalent to raising output by about 20%".