Institutions and economics
Ethnic favouritism is a longstanding problem in Africa. This column presents new evidence of this phenomenon and how democracy affects it. Data on road building in Kenya confirms strong ethnic favouritism that disappears during periods of democracy.
Mass political protests are erupting in Ukraine. The conventional wisdom views them as driven by popular dissatisfaction with the government’s rejection of the EU agreement. This column argues that the main cause for the protests is the weak institutional framework that emerged after the collapse of communism. Therefore, a potential EU involvement will be most beneficial in providing a stable institutional setting. Utilising this historical moment is important in order for Ukraine to avoid the example of Argentina.
Management quality varies enormously across nations and these differences are associated with important outcomes such as firm-size distribution and aggregate productivity. Such facts, however, cannot be understood using existing trade theory. This JMP Vox column describes a new general equilibrium framework linking management technology, firms’ hierarchy choices, and international trade. Heightened import competition induces firms to flatten their hierarchies and rely more on incentive-based pay. Better management is also complementary with trade liberalisation, since nations with superior management technology experience larger gains from trade.
Around the world, civil service reform is viewed as necessary to deliver public services effectively and to foster development. However, evidence is thin on how the management of bureaucrats affects the provision of public services. This column presents new evidence from Nigeria linking completion rates of government projects to bureaucractic management practices. Greater autonomy is associated with higher completion rates, whereas performance monitoring and incentive schemes seem to backfire. The most effective private-sector management practices may not be suited to public sector bureaucracies.
Reduced policy uncertainty can contribute to a country’s economic growth. This column highlights the negative influence of policy uncertainty and political instability on the growth of Japan. A survey shows that international trade and tax polices pose the greatest uncertainty on Japanese companies. The column concludes with a discussion of the mechanism via which uncertainty affects corporate behavior.
Other Recent Articles:
- Institutions and ethnicities in Africa
- Should ECB minutes be published?
- Awakening the WTO
- On the ‘Coase theorem’ and the economics of Coase
- The welfare cost of lawlessness: Evidence from Somali piracy
- Misplaced concerns about central-bank independence
- Things we must consider in shaping Japanese economic policy for the future
- Estimating neutral interest rates in Latin America
- The hidden gains from trade liberalisation
- Macroeconomic adjustment and the history of crises in open economies
- Why supervisors should continue measuring financial risks – the fallacy of simple rules
- Public procurement markets: Where are we?
- Power sharing and institutional stability
- Débâcle: The 11th GTA report on protectionism
- Why America spends while the world saves
- Public-debt crises and bad equilibria
- South-South investment, institutional quality, and natural resources
- The privatisation of infrastructure: One size does not fit all
- The damaged ECB legitimacy
- Legal origin: A Chinese perspective
- Internationalisation, innovation, and productivity of firmsAltomonte, Aquilante, Békés, Ottaviano
- How rich nations benefit from EU membershipCampos, Coricelli, Moretti
- The ECB should do QE via forex interventionFrankel
- The chartbook of economic inequalityAtkinson, Morelli
- Predicting economic turning pointsAhir, Loungani
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- The ECB’s stealth bailoutSinn
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Mulgan, 11 April 2014
Campos, Coricelli, Moretti
Ostry, Berg, Tsangarides