Premium
The Institutional Environment for Economic Growth
Author(s) -
Henisz W. J.
Publication year - 2000
Publication title -
economics and politics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.822
H-Index - 45
eISSN - 1468-0343
pISSN - 0954-1985
DOI - 10.1111/1468-0343.00066
Subject(s) - ordinary least squares , veto , measure (data warehouse) , simple (philosophy) , politics , econometrics , estimation , economics , government (linguistics) , least squares function approximation , mathematics , variable (mathematics) , instrumental variable , variation (astronomy) , simple linear regression , power (physics) , statistics , computer science , political science , regression analysis , mathematical analysis , law , physics , philosophy , database , estimator , linguistics , management , epistemology , quantum mechanics , astrophysics
This article forges an explicit link between an objective measure of political constraints and variation in cross‐national growth rates. It derives a new measure of political constraints from a simple spatial model of political interaction that incorporates information on the number of independent branches of government with veto power and the distribution of preferences across and within those branches. The derived variable is found to have a statistically and economically significant impact on growth rates using simple ordinary least squares, three‐stage least squares and generalized method of moments estimation techniques.