IDEAS home Printed from https://ideas.repec.org/p/ess/wpaper/id3029.html
   My bibliography  Save this paper

Governance, Institutions, and Regional Infrastructure in Asia

Author

Listed:
  • Prabir De

Abstract

This study is a comprehensive, empirical analysis of the linkages between governance, institutions, and regional infrastructure. The empirical results indicate that governance and institutions are crucial for regional infrastructure development: every one point improvement in governance results in a 1 to 1.5 point rise in regional infrastructure. Countries (and regions) with higher income, stronger institutions, better governance, and more open economies are likely to have higher levels of regional infrastructure. The findings of this paper suggest that our efforts to promote regional infrastructure must not be limited to traditional policy measures aimed at attracting investment in infrastructure, but must also address policy reform across a number of areas. Thus, institutions and governance must play an important complementary role in strengthening Asia’s regional infrastructure. [ADBI Working Paper 183]

Suggested Citation

  • Prabir De, 2010. "Governance, Institutions, and Regional Infrastructure in Asia," Working Papers id:3029, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:3029
    Note: Institutional Papers
    as

    Download full text from publisher

    File URL: http://www.esocialsciences.org/Download/repecDownload.aspx?fname=Document114102010320.3188898.pdf&fcategory=Articles&AId=3029&fref=repec
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. World Bank, 2005. "Financing Information and Communication Infrastructure Needs in the Developing World : Public and Private Roles," World Bank Publications - Books, The World Bank Group, number 7491.
    2. Douglas H. Brooks & Jayant Menon, 2008. "Infrastructure and Trade in Asia: An Overview," Chapters, in: Douglas H. Brooks & Jayant Menon (ed.), Infrastructure and Trade in Asia, chapter 1, Edward Elgar Publishing.
    3. Alberto Chong & Mark Gradstein, 2007. "Inequality and Institutions," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 454-465, August.
    4. John B. Kidd & Frank-Jürgen Richter, 2005. "Infrastructure and Productivity in Asia," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-52356-2, March.
    5. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    6. Francois, Joseph & Manchin, Miriam, 2013. "Institutions, Infrastructure, and Trade," World Development, Elsevier, vol. 46(C), pages 165-175.
    7. Clay Wescott, 2005. "Improving Road Administration in the Asia-Pacific Region: Some Lessons from Experience," Palgrave Macmillan Books, in: Infrastructure and Productivity in Asia, chapter 7, pages 123-143, Palgrave Macmillan.
    8. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, June.
    9. Ross Levine, 2005. "Law, Endowments and Property Rights," Journal of Economic Perspectives, American Economic Association, vol. 19(3), pages 61-88, Summer.
    10. Alicia H. Munnell, 1991. "Is there a shortfall in public capital investment? An overview," New England Economic Review, Federal Reserve Bank of Boston, issue May, pages 23-35.
    11. Ghosh, Buddhadeb & De, Prabir, 2005. "Investigating the linkage between infrastructure and regional development in India: era of planning to globalisation," Journal of Asian Economics, Elsevier, vol. 15(6), pages 1023-1050, January.
    12. International Monetary Fund, 1998. "Roads to Nowhere; How Corruption in Public investment Hurts Growth," IMF Economic Issues 1998/001, International Monetary Fund.
    13. Gündüz Atalik & Manfred M. Fischer (ed.), 2002. "Regional Development Reconsidered," Advances in Spatial Science, Springer, number 978-3-642-56194-8.
    14. Stephen Knack & Philip Keefer, 1995. "Institutions And Economic Performance: Cross‐Country Tests Using Alternative Institutional Measures," Economics and Politics, Wiley Blackwell, vol. 7(3), pages 207-227, November.
    15. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    16. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    17. Henri L. F. De Groot & Gert‐Jan Linders & Piet Rietveld & Uma Subramanian, 2004. "The Institutional Determinants of Bilateral Trade Patterns," Kyklos, Wiley Blackwell, vol. 57(1), pages 103-123, February.
    18. Rose-Ackerman, Susan, 1975. "The economics of corruption," Journal of Public Economics, Elsevier, vol. 4(2), pages 187-203, February.
    19. Johannes Jütting, 2003. "Institutions and Development: A Critical Review," OECD Development Centre Working Papers 210, OECD Publishing.
    20. Easterly, William, 2001. "Can Institutions Resolve Ethnic Conflict?," Economic Development and Cultural Change, University of Chicago Press, vol. 49(4), pages 687-706, July.
    21. Knack, Stephen & Keefer, Philip, 1995. "Institutions and Economic Performance: Cross-Country Tests Using Alternative Institutional Indicators," MPRA Paper 23118, University Library of Munich, Germany.
    22. Alberto Chong & Mark Gradstein, 2004. "Inequality, Institutions, and Informality," Research Department Publications 4377, Inter-American Development Bank, Research Department.
    23. James E. Anderson & Douglas Marcouiller, 2002. "Insecurity And The Pattern Of Trade: An Empirical Investigation," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 342-352, May.
    24. Matthias Helble & Ben Shepherd & John S. Wilson, 2009. "Transparency and Regional Integration in the Asia Pacific," The World Economy, Wiley Blackwell, vol. 32(3), pages 479-508, March.
    25. Lee, Keun & Kim, Byung-Yeon, 2009. "Both Institutions and Policies Matter but Differently for Different Income Groups of Countries: Determinants of Long-Run Economic Growth Revisited," World Development, Elsevier, vol. 37(3), pages 533-549, March.
    26. World Bank, 2008. "World Development Indicators 2008," World Bank Publications - Books, The World Bank Group, number 11855.
    27. Alberto Chong & Mark Gradstein, 2007. "Inequality and Institutions," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 454-465, August.
    28. Ben Arimah, 2004. "Poverty Reduction and Human Development in Africa," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 5(3), pages 399-415.
    29. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    30. David Alan Aschauer, 1989. "Back of the G-7 pack: public investment and productivity growth in the Group of Seven," Working Paper Series, Macroeconomic Issues 89-13, Federal Reserve Bank of Chicago.
    31. Bose, Niloy & Capasso, Salvatore & Murshid, Antu Panini, 2008. "Threshold Effects of Corruption: Theory and Evidence," World Development, Elsevier, vol. 36(7), pages 1173-1191, July.
    32. Douglas H. Brooks & Jayant Menon (ed.), 2008. "Infrastructure and Trade in Asia," Books, Edward Elgar Publishing, number 13171.
    33. Epstein, Gil S. & Gang, Ira N., 2009. "Good governance and good aid allocation," Journal of Development Economics, Elsevier, vol. 89(1), pages 12-18, May.
    34. Avinash Dixit, 2009. "Governance Institutions and Economic Activity," American Economic Review, American Economic Association, vol. 99(1), pages 5-24, March.
    35. Kolstad, Ivar & Wiig, Arne, 2009. "Is Transparency the Key to Reducing Corruption in Resource-Rich Countries?," World Development, Elsevier, vol. 37(3), pages 521-532, March.
    36. Kenny, Charles, 2007. "Infrastructure governance and corruption : where next ?," Policy Research Working Paper Series 4331, The World Bank.
    37. Nagesh Kumar & Prabir De, 2008. "East Asian Infrastructure Development in a Comparative Global Perspective : An Analysis of RIS Infrastructure Index," Development Economics Working Papers 22114, East Asian Bureau of Economic Research.
    38. Rajan, Raghuram G. & Zingales, Luigi, 2003. "The great reversals: the politics of financial development in the twentieth century," Journal of Financial Economics, Elsevier, vol. 69(1), pages 5-50, July.
    39. Mr. Arvind Subramanian & Mr. Francesco Trebbi & Mr. Dani Rodrik, 2002. "Institutions Rule: The Primacy of Institutions over Integration and Geography in Economic Development," IMF Working Papers 2002/189, International Monetary Fund.
    40. Aron, Janine, 2000. "Growth and Institutions: A Review of the Evidence," The World Bank Research Observer, World Bank, vol. 15(1), pages 99-135, February.
    41. Gradstein, Mark, 2004. "Inequality, Democracy and the Emergence of Institutions," CEPR Discussion Papers 4187, C.E.P.R. Discussion Papers.
    42. Joseph Francois & Miriam Manchin & Annette Pelkmans-Balaoing, 2009. "Regional Integration in Asia: The Role of Infrastructure," Palgrave Macmillan Books, in: Joseph Francois & Pradumna B. Rana & Ganeshan Wignaraja (ed.), Pan-Asian Integration, chapter 7, pages 439-485, Palgrave Macmillan.
    43. Campos, Nauro F. & Nugent, Jeffrey B., 1998. "Institutions and growth: can human capital be a link?," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    44. Roger Vickerman, 2002. "Restructuring of Transportation Networks," Advances in Spatial Science, in: Gündüz Atalik & Manfred M. Fischer (ed.), Regional Development Reconsidered, chapter 8, pages 148-159, Springer.
    45. Alberto Chong & Mark Gradstein, 2004. "Inequality, Institutions, and Informality," Research Department Publications 4377, Inter-American Development Bank, Research Department.
    46. Bolaky, Bineswaree & Freund, Caroline, 2004. "Trade, regulations, and growth," Policy Research Working Paper Series 3255, The World Bank.
    47. Brian Levy, 2007. "Governance Reform : Bridging Monitoring and Action," World Bank Publications - Books, The World Bank Group, number 6742.
    48. World Bank, 2008. "World Development Indicators 2008," World Bank Publications - Books, The World Bank Group, number 28241.
    49. Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Aggregating governance indicators," Policy Research Working Paper Series 2195, The World Bank.
    50. Bulte, Erwin H. & Damania, Richard & Deacon, Robert T., 2005. "Resource intensity, institutions, and development," World Development, Elsevier, vol. 33(7), pages 1029-1044, July.
    51. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    52. Anderson, T. W. & Hsiao, Cheng, 1982. "Formulation and estimation of dynamic models using panel data," Journal of Econometrics, Elsevier, vol. 18(1), pages 47-82, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Prabir De, 2010. "Does Governance Matter for Enhancing Trade? Empirical Evidence from Asia," Governance Working Papers 22792, East Asian Bureau of Economic Research.
    2. Serkan Degirmenci, 2011. "Do Institutions Matter for Regional Economic Growth and Development? The Case of Turkey," ERSA conference papers ersa11p1180, European Regional Science Association.
    3. Anil Sood & Y. Aaron Szyf, 2011. "Productivity and Technology for Asia’s Growth," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 3(3), pages 313-334, September.
    4. Ambaw Desalegn & Nigussie Solomon, 2022. "The Interrelationship among Institutional Capacity, Infrastructure Governance and Equity, and Nation-Building Process in Ethiopia," Public Organization Review, Springer, vol. 22(3), pages 627-647, September.
    5. Timilsina,Govinda R. & Sahoo,Pravakar & Dash,Ranjan Kumar, 2022. "Why Do Indian States Differ in Their Infrastructure Development ?," Policy Research Working Paper Series 10086, The World Bank.
    6. Ngendakuriyo, Fabien & Zaccour, Georges, 2017. "Should civil society organizations cooperate or compete in fighting a corrupt government?," Mathematical Social Sciences, Elsevier, vol. 85(C), pages 30-36.
    7. Foa, R. & Tanner, J.C., 2012. "Methodology of the Indices of Social Development," ISD Working Paper Series 2012-04, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    8. Harinder Kohli & Ashok Sharma & Anil Sood (ed.), 2011. "Asia 2050: Realizing the Asian Century," Books, Emerging Markets Forum, edition 1, number asia2050, July.
    9. Serkan Degirmenci, 2011. "Do Institutions Matter for Regional Economic Growth and Development? The Case of Turkey," ERSA conference papers ersa11p1374, European Regional Science Association.
    10. Anil Sood & Y. Aaron Szyf, 2011. "Productivity and Technology for Asia’s Growth," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 3(3), pages 313-334, September.
    11. Muhammad Azam, 2022. "Governance and Economic Growth: Evidence from 14 Latin America and Caribbean Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(2), pages 1470-1495, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Prabir De, 2010. "Governance, Institutions, and Regional Infrastructure in Asia," Governance Working Papers 22878, East Asian Bureau of Economic Research.
    2. Prabir De, 2010. "Does Governance Matter for Enhancing Trade? Empirical Evidence from Asia," Governance Working Papers 22792, East Asian Bureau of Economic Research.
    3. Marilene Lorizio & Antonia Rosa Gurrieri, 2017. "Resilient Smes, Institutions And Justice. Evidence In Italy," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 20, pages 131-155, December.
    4. Zergawu, Yitagesu Zewdu & Walle, Yabibal M. & Giménez-Gómez, José-Manuel, 2020. "The joint impact of infrastructure and institutions on economic growth," Journal of Institutional Economics, Cambridge University Press, vol. 16(4), pages 481-502, August.
    5. Prabir De, 2011. "Do institutions matter for trade in Asian countries?," STUDIES IN TRADE AND INVESTMENT, in: Trade-led growth: A sound strategy for Asia, chapter 9, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    6. Eslamloueyan, Karim & Jafari, Mahboubeh, 2019. "Do better institutions offset the adverse effect of a financial crisis on investment? Evidence from East Asia," Economic Modelling, Elsevier, vol. 79(C), pages 154-172.
    7. W. A. Naudé, 2004. "The effects of policy, institutions and geography on economic growth in Africa: an econometric study based on cross-section and panel data," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(6), pages 821-849.
    8. Stela Cani, 2009. "Resource Abundance, Mineral Funds and Institutional Quality," Economics Discussion Papers em-dp2009-04, Department of Economics, University of Reading.
    9. Karam, Fida & Zaki, Chahir, 2019. "Why Don’t MENA Countries Trade More? The Curse of Deficient Institutions," The Quarterly Review of Economics and Finance, Elsevier, vol. 73(C), pages 56-77.
    10. Effiong, Ekpeno, 2015. "Financial Development, Institutions and Economic Growth: Evidence from Sub-Saharan Africa," MPRA Paper 66085, University Library of Munich, Germany.
    11. Takuma Kunieda & Keisuke Okada & Akihisa Shibata, 2017. "A Simple Model of Contract Enforcement Institutions," Pacific Economic Review, Wiley Blackwell, vol. 22(3), pages 410-434, August.
    12. Bah, Mamadou & Atangana Ondoa, Henri & Kpognon, Koffi Délali, 2021. "Effects of governance quality on exports in Sub-Saharan Africa," International Economics, Elsevier, vol. 167(C), pages 1-14.
    13. Saima Nawaz & Nasir Iqbal & Muhammad Arshad Khan, 2014. "The Impact of Institutional Quality on Economic Growth: Panel Evidence," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 53(1), pages 15-31.
    14. Neelum Nigar, 2015. "The Composite Impact of Institutional Quality and Inequality on Economic Growth," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(4), pages 779-791.
    15. Schneider, Sophie Therese, 2018. "North-South trade agreements and the quality of institutions: Panel data evidence," Hohenheim Discussion Papers in Business, Economics and Social Sciences 27-2018, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    16. Arminen, Heli & Menegaki, Angeliki N., 2019. "Corruption, climate and the energy-environment-growth nexus," Energy Economics, Elsevier, vol. 80(C), pages 621-634.
    17. Milan Žák & Petr Vymětal, 2006. "Institucionální aspekty nové komparativní ekonomie: ČR a EU [Institutional aspects of new comparative economy: Czech republic and European union]," Politická ekonomie, Prague University of Economics and Business, vol. 2006(5), pages 583-609.
    18. Alberto Chong & Mark Gradstein, 2007. "Inequality and Institutions," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 454-465, August.
    19. Nasreen, Samia & Mahalik, Mantu Kumar & Shahbaz, Muhammad & Abbas, Qaisar, 2020. "How do financial globalization, institutions and economic growth impact financial sector development in European countries?," Research in International Business and Finance, Elsevier, vol. 54(C).
    20. Park, Jun-ki & Ryu, Deockhyun & Lee, Keun, 2019. "What determines the economic size of a nation in the world: Determinants of a nation’s share in world GDP vs. per capita GDP," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 203-214.

    More about this item

    Keywords

    comprehensive; governance; institutions; development; traditional; policy measures;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ess:wpaper:id:3029. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Padma Prakash (email available below). General contact details of provider: http://www.esocialsciences.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.