Journal Club held on December 2014: Institution and Economic Development
Aims to enhance scientific research and exchange of experience of collective research faculty of Business Administration, Faculty of Business Administration dated 12.15.2014 held Journal Club meetings regularly, rapporteur: Dr. Pham Thi Ngan, the theme of the meetings was "Institution and Economic Development: A Granger causality analysis of panel data Evidence", the article was published in the Journal of Economic System, (2013), the publisher ELSEVIER.
Link: http://www.sciencedirect.com/science/article/pii/S0939362513000812
Abstract
This study examines the causal relationship between institutions and economic development using a panel Granger causality test. The study incorporates two institutional datasets, the International Country Risk Guide (ICRG) and World Governance Indicators (WGI). The empirical results based on 60 countries show that there is a bi-directional causality between institutions and economic development. The findings also suggest that causality patterns between institutions and economic performance vary at different stages of income level. Better institutional quality fosters economic development in higher income countries, whereas economic development tends to enhance institutional quality in lower income countries.