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Working Paper

The Benin Institutional Diagnostic – conclusions

This publication is part of the Benin Institutional Diagnostic. Based on the descriptive analysis of the economic, social, and political context in the first part of this volume, and the various thematic studies in the second part, this final chapter…

Benin – The economic relationship with Nigeria

This publication is part of the Benin Institutional Diagnostic. Summary of contents: 1 Introduction 2 Historical economic relations between Benin and Nigeria 3 Causes of informal trade: Nigeria’s pervasive distortions incentivise smuggling 4 Magnitude of entrepôt trade between Benin and…

Benin – Land rights and reforms

This publication is part of the Benin Institutional Diagnostic. This chapter deals with the issue of land tenure, which has been identified by the research coordinators as one of the major institutional problems in Benin. It deals more specifically with…

Benin – How can tax gaps be reduced?

This publication is part of the Benin Institutional Diagnostic. Abstract: Using a database providing information on tax revenue over the period 1980–2015, covering 42 sub-Saharan African (SSA) countries, we analyse the efforts by Benin to raise tax revenue, in regard…

Benin – A case study of the cotton sector

This publication is part of the Benin Institutional Diagnostic. Contents: 1 Introduction 2 Analytical framework 2.1 Organisation of the cotton sector 2.2 External factors 2.3 Domestic factors 3 Historical background of cotton in Benin: 1641-1960 3.1 Pre-colonial period to 1949:…

Benin – Campaign finance and state capture

This publication is part of the Benin Institutional Diagnostic. This chapter uses a novel database on contractual arrangements between politicians, political brokers, and businessmen in Benin to investigate the way the nature of these arrangements depends on the level of…

Benin – Insights from international comparisons

This publication is part of the Benin Institutional Diagnostic. This chapter aims to identify the institutional areas that most constrain Benin’s economic development, relying on expert opinion as it appears in databases that provide international comparisons of institutional and related…

Benin – A macro picture of economic and social indicators

This publication is part of the Benin Institutional Diagnostic. This chapter is the second part of the overview of institutional and other constraints on the development of Benin. While the first chapter focused on the geographical, historical, social, and political…

Benin – The spatial, historical and socio-political context

This publication is part of the Benin Institutional Diagnostic. This chapter, Chapter 1, constitutes the first part of a two-step overview of institutional and other constraints on the development of Benin. It looks at the context in which Benin’s development…

Introduction to the thematic studies (Benin)

François Bourguignon provides a brief introduction to the five thematic studies undertaken for the Benin Institutional Diagnostic.

Introduction to the Benin Institutional Diagnostic

This introductory chapter the the Benin Institutional Diagnostic provides a contextual overview to the publication under five main topics: ‘Institutions matter’ How institutions matter in development policy today Searching for evidence on the quality of institutions and development Institutional diagnostic…

Child marriage law, gender norms and marriage customs (Bangladesh)

Abstract: The negative welfare consequences of child marriage are well established, but the phenomenon is still ubiquitous in developing countries, where one in three girls is married before the age of 18. Although most countries have a legal minimum age of marriage…

Resource transfers to local governments (West Bengal)

This EDI Working Paper arises from the research undertaken for a case study on “Discretion versus rule-based budgeting and assignment in Indian governments“. The study shows how political support of household heads respond to receipt of different private and public good…

Community Origins of Industrial Entrepreneurship in Pre-Independence India

This EDI Working Paper derives from research undertaken in the Case Study on ‘Community networks and industrial entrepreneurship in India and China’ by Dilip Mookherjee et al. The authors argue that community networks played an important role in the emergence of…

Community networks and the growth of private enterprise in China

This paper identifies and quantifies the role played by birth-county-based community networks in the growth of private enterprise in China. We develop a network-based model that generates predictions for the dynamics of firm entry, concentration, and firm size across birth counties with varying…

Tanzania Institutional Diagnostic – Synthesis

Tanzania Institutional Diagnostic Chapter 8: Synthesis This chapter provides a synthesis of information and arguments developed in the first seven chapters of the Tanzania Institutional Diagnostic. Chapter outline Part 1.  The basic institutional constraints on Tanzanian development The main challenges…

Tanzania Institutional Diagnostic – Chapter 7

Tanzania Institutional Diagnostic Chapter 7: Power Sector Chapter outline Introduction The Tanzanian power sector: structure and performance Institutional structure Power sector performance The Tanzanian power sector’s institutional development Early institutional infrastructure in the power sector – the colonial period From…

Tanzania Institutional Diagnostic – Chapter 6

Tanzania Institutional Diagnostic Chapter 6: Land Rights Chapter outline Overview A brief historical perspective on land tenure issues Legal land tenure in Tanzania according to the 1999 Land Act Rights of occupancy Land transformation by the state and the issue…

Tanzania Institutional Diagnostic – Chapter 5

Tanzania Institutional Diagnostic Chapter 5: Decentralization and development Chapter outline Introduction The theory of central–local government relationships The evolution of local government in Tanzania Local and central governance in Tanzania today: a complex and confusing legal framework Fiscal decentralisation: the…

Tanzania Institutional Diagnostic – Chapter 4

Tanzania Institutional Diagnostic Chapter 4: Civil Service Chapter outline Introduction The role and political context of the civil service in economic development The transitional phase, 1961–66 The socialist phase, 1967–85 The liberalisation phase, 1986 to date Constraints to effective civil…

Tanzania Institutional Diagnostic – Chapter 3

Tanzania Institutional Diagnostic Chapter 3: Politics and business Chapter outline Introduction Theoretical framework and methodology The early independence period: 1961–66 The situation at independence Origins of the position of Asians Development initiatives in early post-independence period Continued concern over social…

Tanzania Institutional Diagnostic – Chapter 2

Tanzania Institutional Diagnostic Chapter 2: Tanzanian institutional strengths and weaknesses Chapter outline Introduction The Country Institutional Survey (CIS): experts’ opinions on Tanzanian institutions The survey: design of the questionnaire Execution of the survey Most critical institutions for the development of Tanzania…

Tanzania Institutional Diagnostic – Chapter 1

Tanzania Institutional Diagnostic Chapter 1: Reflections on the political and economic development of Tanzania Chapter outline A short account of the political history of Tanzania The colonial era The German colonisation The British mandate on Tanganyika Independence Forging a nation: the…

Tanzania Institutional Diagnostic – Introduction chapter

François Bourguignon and Sam Wangwe provide an introduction to the analysis produced for the Tanzania Institutional Diagnostic. The authors outline three approaches have been developed to identify the institutional factors hindering development or ways of remedying specific factors: historical case studies;…

Institutions, Development and Growth

Where does the evidence stand on institutions, development and growth? This paper explores the empirical evidence on institutions and growth. The empirical evidence on institutions ranges from historical studies to econometric analyses, with different studies making very different theoretical commitments…

Clientelistic politics and economic development – an overview

This paper provides an overview of the literature on political clientelism  and its relation to economic development. It starts by describing the range of mechanisms used by political operatives to monitor how specific voters vote in order to target clientelistic…

Formal Institutions and Development in Low-Income Countries: Positive and Normative Theory

This paper reviews and discusses the literature on formal institutions and development. We first discuss the mapping from institutions to economic development, with the main emphasis on the effect on economic growth. We thereafter discuss two main literatures on endogenous…

Formal and Informal Market Institutions: Embeddedness

Market exchange involves many cognitive and non-cognitive processes, e.g., search, inference, prediction, negotiation. Much attention has been devoted to these issues both in theory and in experimental economics. I focus on the enforcement of market transactions against opportunistic behavior. I…

Culture, Institutions, and Development

This paper presents a survey of the literature on culture in economics, emphasizing the effects of culture as well as the origins of cultural development. Research finds culture to have a large set of effects on economic behaviors, outcomes and …

The Dynamics of Family Systems: Lessons from Past and Present Times

This paper reviews the economic literature on how family systems respond to changes in resource endowments, outside economic opportunities, the development of markets, and surrounding institutions. On topics where economic contributions are scarce, we also provide insights from other disciplines,…

Institutions and Development: An Overview of Case Studies

Institutions are commonly defined as the rules of the game that societies play which in shared understanding act as constraints on and guidelines for economic performance. This paper provides an overview of case studies from the two largest developing countries,…

Institutions, Growth Accelerations and Growth Collapses

A next step forward in examining economic growth and institutions is examining the frequency, timing and magnitude of “growth episodes”—discrete accelerations and de-celerations in medium to long run growth.  This will be challenging as to the extent that very long-run…

Institutions for Infrastructure in Developing Countries

The paper surveys the very heterogeneous economic literature on the scope and limits of efforts to match institutional constraints and needs, on the one hand, and infrastructure policy and project designs, on the other, to increase the odds of improving…

Institutions, Firm Financing and Growth

This paper reviews and synthesizes current knowledge on the role of institutions on firm financing and growth in developing countries. First, the paper presents stylized facts on the different institutional constraints under which firms in developing countries operate. Next, the…

Finance, Institutions and Development: Literature Survey and Research Agenda

This paper takes stock of and provides a critical review of several literatures, notably the theoretical and empirical work on finance and growth and studies on the determinants of financial development. These two literatures are linked as the sustainable expansion…

Firms, Workers and Labor Markets

This paper provides a selective review of evidence from labor markets in low-income countries. The aim is to synthesize this literature to consolidate what is known about the key drivers of worker outcomes (including those of micro-entrepreneurs), firm behavior, and the interaction between…

Education, Institutions and Economic Development

A large share of children in low income countries learn little and complete their primary education lacking even basic reading, writing and arithmetic skills. We review the experimental literature on teacher effort, knowledge, and skills – areas we argue are…

Technological change, Marxist contradictions and institutional revolutions: a historical perspective

The paper discusses Marx’s view on the relationship between technological change and institutional change as presented in the famous preface to A Contribution to the Critique of Political Economy.  What Marx meant by a contradiction between the base and the…

Trade Related Institutions and Development

The paper focuses on the role played by Trade Related Institutions (TRIs) in shaping trade flows and their development impact in low income countries and how these TRIs are shaped by international trade. Three types of TRIs are examined: i)…

Foreign Aid and Governance: A survey

This paper surveys the literature on the two-way relationship between development aid and the quality of institutions in developing countries. Aid may improve institutions, e.g. when conditionality succeeds, but it can also have unintended effects that are typically negative, e.g….

Conflict and Development

In this review, we examine the links between economic development and social conflict. By economic development, we refer broadly to aggregate changes in per-capita income and wealth, or in the distribution of that wealth. By social conflict, we refer to…

Gender Institutions, and Economic Development

Gender relations are a key institution governing important aspects of production and reproduction of societies. They are guided by formal institutions as well as informal norms and values. As this survey shows, there is great regional heterogeneity in gender inequality…

Institutions, the environment, and development

Environmental problems may be classified by the scale of the relevant externalities. Some externalities are primarily local, for example, those concerning the management of resources like forests, pastures and inland fisheries, or local air and water pollution. Others are mainly regional…

Institutions and Economic Inequality

I ask what clues do historical and contemporary data provide for theory building and empirical work to enhance our understanding of the relationship between institutions and inequality. The survey begins with a brief overview of the role of institutions in…

Group inequality in democracies: lessons from cross-national experiences

Group inequality is a prominent feature of many modern democracies. The purpose of this paper is to take stock of what we know about the ways in which major democracies have viewed social groups and addressed inequalities between them. Countries…

Migration, Institutions and Development

This survey examines the relationship between community networks and migration. Adding networks to the Roy model, the workhorse model of migration in economics, is shown to reconcile key stylized facts on migration with the theory. This addition is supported by…

Media as a Tool for Institutional Change in Development

This paper reviews the channels through which the media can be a tool of institutional development, building the argument in two parts. First I focus on the media as a tool for accountability: by providing information on candidates ex ante,…

At the Intersection: A Review of Institutions in Economic Development

We present accepted basic arguments on the role of institutions in development and then discuss the corresponding empirical evidence in support (or not) of those arguments. Methodologically, our emphasis is on experimental evidence wherever available, and thematically we focus on…

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