Rodrik, Subramanian, and Trebbi (2002) contribute to the discussion on the impact of geography, institutions and international trade on cross-national differences in income levels. They find that only institutions exert a significant direct impact on incomes. Meanwhile, international trade has no direct effect and geography has at best weak direct effects on incomes.
Examining its empirical framework, I find that the way the study measures geography is inadequate and that the framework therefore does not treat the three “deeper determinants” equally in the sense of giving the geography-hypothesis a smaller chance to prevail. Based on this finding, the underlying structure is adjusted and developed further to provide an improved basis for future analyses.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Instruments
- AJR instrument
- FR-instrument
- Measures of geography
- Empirical framework
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to contribute to the debate on the impact of geography, institutions, and international trade on cross-national income differences. The study focuses on the three "deeper determinants" of economic growth, which are considered to be crucial for understanding the disparities in income levels across countries.
- The role of institutions in economic development
- The significance of geography in influencing income levels
- The impact of international trade on economic growth
- The comparison of different theoretical frameworks for analyzing economic development
- The analysis of empirical data to assess the relative importance of different factors
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter provides an overview of the topic and introduces the research question. It discusses the significance of cross-national income differences and reviews existing literature on the determinants of economic development.
- Instruments: This chapter describes the instruments used to measure institutional quality, international trade, and geography. It provides a detailed explanation of the AJR and FR instruments, which are employed in the study.
- Measures of geography: This chapter examines the different measures of geography used in the analysis, focusing on the potential limitations of existing approaches.
- Empirical framework: This chapter presents the empirical framework used to investigate the relationship between geography, institutions, and income levels. It outlines the methodology employed and analyzes the results of the study.
Schlüsselwörter (Keywords)
The primary keywords and focus topics of this text include institutional quality, geography, international trade, economic development, cross-national income differences, empirical analysis, and theoretical frameworks.
- Quote paper
- Peter Hartlieb (Author), 2015, A Review of "Institutions Rule: The Primacy of Institutions over Geography and Integration in Economic Development", Munich, GRIN Verlag, https://www.grin.com/document/315671
