Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7360168 | Journal of Economics and Business | 2018 | 17 Pages |
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.
Related Topics
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Authors
Andre C. Vianna, Andre V. Mollick,