Causality and feedback between institutional measures and economic growth

Alberto Chong, César Calderón

Research output: Contribution to journalArticle in a journalpeer-review

180 Scopus citations


Recent cross-section studies have demonstrated a strong link between measures of corruption, bureaucratic quality, property rights, and other institutional variables, and economic growth. In this paper we build on previous research and present some empirical evidence on the direction of causality between institutional measures and growth. It appears that the poorer the country, and the longer the wait, the higher the influence of institutional quality on economic growth. However, we also show the existence of reverse causality. Indeed, it appears that economic growth also causes institutional quality.
Original languageEnglish
Pages (from-to)69-81
Number of pages13
JournalEconomics and Politics
Issue number1
StatePublished - 1 Jan 2000
Externally publishedYes


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