Institutions: Key variable for economic development in Latin America

Authors

Andre Vianna
Andre V. Mollick, The University of Texas Rio Grande ValleyFollow

Document Type

Article

Publication Date

3-2018

Abstract

This article examines economic development from 1996 to 2015 for 192 countries and specifically Latin America. Evidence shows that each 0.1-point increase in institutions impacts a 3.9% improvement in Latin American per capita output versus a 2.6% effect on world development. This new evidence from Latin America shows a missing opportunity to develop at higher annual pace than the 2.14% average, mainly due to the deterioration in rule of law. We conjecture the efficiency of monetary/fiscal policies will improve if policymakers emphasize projects that foster improvements to institutional quality, such as transparency, public spending quality and fiscal responsibility.

Comments

Original published version available at https://doi.org/10.1016/j.jeconbus.2017.12.002

Recommended Citation

Vianna, Andre C., and Andre V. Mollick. “Institutions: Key Variable for Economic Development in Latin America.” Journal of Economics and Business 96 (March 1, 2018): 42–58. https://doi.org/10.1016/j.jeconbus.2017.12.002.

First Page

42

Last Page

58

Publication Title

Journal of Economics and Business

DOI

10.1016/j.jeconbus.2017.12.002