Institutions and poverty

The Journal of Development Studies
Edinaldo Tebaldi, Ramesh Mohan

Abstract

This study utilises eight alternative measures of institutions and the instrumental variable method to examine the impacts of institutions on poverty. The estimates show that an economy with a robust system to control corruption, an effective government, and a stable political system will create the conditions to promote economic growth, minimise income distribution conflicts, and reduce poverty. Corruption, ineffective governments, and political instability will not only hurt income levels through market inefficiencies, but also escalate poverty incidence via increased income inequality. The results also imply that the quality of the regulatory system, rule of law, voice and accountability, and expropriation risk are inversely related to poverty but their effect on poverty is via average income rather than income distribution.

References

Mar 1, 1997·Health Affairs·S Jones, L Etheredge
Feb 16, 2006·Endoscopy·D K Bhasin, S S Rana

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Citations

Apr 15, 2020·The British Journal of Sociology·Andrew Dawson, Liam Swiss
Sep 12, 2018·Environmental Science and Pollution Research International·Reham Rizk, Mehdi Ben Slimane

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