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Institutional Kuznets curve? An empirical analysis with panel data

Author

Listed:
  • Martínez-Navarro, Diego
  • Amate-Fortes, Ignacio
  • Guarnido-Rueda, Almudena
  • Oliver-Márquez, Francisco J.

Abstract

The hypothesis that institutions directly influence income distribution has been defended by numerous authors. However, it may be observed that institutions are deteriorating in developed economies, which poses the question: could a phenomenon similar to the Kuznets curve be applied? Using the Worldwide Governance Indicators' index of the quality of institutions from the World Bank, and data on per capita GDP from the Maddison project (using a sample of 156 countries in the period of 1996–2015), there appears to be empirical evidence in favour of the existence of an institutional Kuznets curve, using the Prais-Winsten estimation and the Generalised Method of Moments (GMM).

Suggested Citation

  • Martínez-Navarro, Diego & Amate-Fortes, Ignacio & Guarnido-Rueda, Almudena & Oliver-Márquez, Francisco J., 2022. "Institutional Kuznets curve? An empirical analysis with panel data," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 35-39.
    • Handle: RePEc:eee:streco:v:63:y:2022:i:c:p:35-39
    DOI: 10.1016/j.strueco.2022.08.008
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    More about this item

    Keywords

    Kuznets curve; Institutions; Development; Governance;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • N4 - Economic History - - Government, War, Law, International Relations, and Regulation

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