Transcript Measuring institutions

Measuring institutions
Data sources
Problems
• Multidimensional concept that is difficult to
measure
– social norms and traditions
– legal rules
– governance
• Measurement errors and biases
– errors
– differences in perceptions (expert opinions)
Most comprehensive dataset as of
today
• Worldwide governance indicators: 1996-2006
Source: World Bank, www.govindicators.org
• Sample: 213 countries and territories; 1996,
1998, 2000, 2002-2006 years
• Kaufmann, Daniel, Kraay, Aart and Mastruzzi,
Massimo, "Governance Matters VI: Governance
Indicators for 1996-2006" (July, 2007). Available
at SSRN: http://ssrn.com/abstract=999979
Dimensions of governance
•
•
•
•
•
•
1. Voice and accountability (VA), the extent to which a country’s citizens are able to
participate in selecting their government, as well as freedom of expression, freedom
of association, and free media
2. Political stability and absence of violence (PV), perceptions of the likelihood
that the government will be destabilized or overthrown by unconstitutional or violent
means, including political violence and terrorism
3. Government effectiveness (GE), the quality of public services, the quality of the
civil service and the degree of its independence from political pressures, the quality of
policy formulation and implementation, and the credibility of the government’s
commitment to such policies
4. Regulatory quality (RQ), the ability of the government to formulate and implement
sound policies and regulations that permit and promote private sector development
5. Rule of law (RL), the extent to which agents have confidence in and abide by the
rules of society, and in particular the quality of contract enforcement, the police, and
the courts, as well as the likelihood of crime and violence
6. Control of corruption (CC), the extent to which public power is exercised for
private gain, including both petty and grand forms of corruption, as well as “capture”
of the state by elites and private interests.
Methodology (2006)
• 276 individual variables measuring
different dimensions of governance.
• 31 different sources, produced by 25
different organizations.
• Aggregation into 6 categories using the
principle component analysis
• Point estimates and standard
errors=>distribution of the measure
Database of political institutions
• World Bank, 1990-2004, 177 countries
• Variables:
–
–
–
–
–
Political system
Executive controls
Party variables
Elective rules
Federalism
• Beck, Thorsten, George Clarke, Alberto Groff,
Philip Keefer and Patrick Walsh, (2001), "New
tools in comparative political economy: The
Database of Political Institutions," 15:1, 165-176
(September), World Bank Economic Review.
Measuring corruption
• Transparency international (TI) at
www.transparency.org
– Corruption perception index
• The CPI ranks more than 150 countries by their perceived
levels of corruption, as determined by expert assessments
and opinion surveys.
– Global corruption barometer
• public opinion survey, 59,661 respondents in 63 countries.
– Bribe payers index 2006
• 30 leading exporting countries, responses of 11,232 business
executives from companies in 125 countries
Corruption perception index 2006
CPI 2006: Eastern Europe and Former Soviet Union
Global Corruption Barometer 2006: bribes
Global Corruption Barometer 2006: corruption
of institutions in a sample of countries
Correlation between CPI and global
barometer
Bribe payers index
Transition countries
• EBRD Transition report:
http://www.ebrd.com/country/sector/econo/
stats/index.htm
• The Business Environment and Enterprise
Performance Survey (BEEPS):
http://info.worldbank.org/governance/beep
s/
International trade, geography, and distances
(New Economic Geography will be offered in
the Mini Term III January-March 2008)
• CEPII (France)
– http://www.cepii.fr/anglaisgraph/news/accueile
ngl.htm
• World integrated trade solution
– http://wits.worldbank.org/witsweb/
General economic indicators
• World development indicators (WDI)
– http://web.worldbank.org/WBSITE/EXTERNAL/DATASTATISTIC
S/0,,contentMDK:20398986~menuPK:64133163~pagePK:64133
150~piPK:64133175~theSitePK:239419,00.html
• United Nations
– http://unstats.un.org/unsd/databases.htm
• OECD
– http://www.oecd.org/statsportal/0,3352,en_2825_293564_1_1_1
_1_1,00.html
• EuroStat
– http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1090,300
70682,1090_33076576&_dad=portal&_schema=PORTAL