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Institutional hierarchies and economic growth: A bundled approach

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  • Helfer, Helena

Abstract

Theoretical and empirical evidence on the relationship between institutions and economic prosperity remains ambiguous, even though it has been part of scholarly discourse for decades. The present study adds to this discussion by introducing a bundled approach for measuring institutions. This approach takes into account interrelations in form of hierarchies between political, economic and the societal institutions and thereby adds to the literature that deals with the mechanisms of economic growth from an institutional perspective. Based on a panel of 153 countries from 1995 to 2016, we find that political institutions establish a deeprooted framework in which societal institutions, such as education and health care, act as main drivers of growth processes.

Suggested Citation

  • Helfer, Helena, 2022. "Institutional hierarchies and economic growth: A bundled approach," CIW Discussion Papers 2/2022, University of Münster, Center for Interdisciplinary Economics (CIW).
    • Handle: RePEc:zbw:ciwdps:22022
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    References listed on IDEAS

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    1. Mogens Justesen & Peter Kurrild-Klitgaard, 2013. "Institutional interactions and economic growth: the joint effects of property rights, veto players and democratic capital," Public Choice, Springer, vol. 157(3), pages 449-474, December.
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    4. Robert J. Barro, 2001. "Human Capital and Growth," American Economic Review, American Economic Association, vol. 91(2), pages 12-17, May.
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    More about this item

    Keywords

    Institutional Hierarchy; Economic Growth; Bundled Measurement;
    All these keywords.

    JEL classification:

    • H00 - Public Economics - - General - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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