Main Article Content

Rahel Schomaker
Cologne Business School and German Research Institute for Public Administration Speyer
Germany
Vol. 3 No. 2 (2014), Articles, pages 104-118
DOI: https://doi.org/10.17979/ejge.2014.3.2.4300
Submitted: Sep 24, 2018 Published: Dec 30, 2014
How to Cite

Abstract

Through several conduits, sound institutional quality is pivotal for economic development, as there is evidence that stable democratic institutions, rule of law and sound governance structures in the administration are highly conducive to promote growth. Therefore, a high institutional quality is not only the end point, but also the starting point of a more sustainable development. In this paper we provide some theoretical considerations as well as empirical evidence, based on several regression analyses, that the quality of institutions in a wider sense, and governance, which includes not only the level of “politics” itself, but also the administrative level, is relevant not only for the macro-level of development (i.e. the increase of the national welfare and foreign investment), but also on a micro-level: A stronger participation of private enterprises in public service provision and the introduction of public-private part¬nerships depends to a high degree on the institutional quality. This is even more relevant as the improvement of public services and of core infrastructures can be seen as crucial multipliers for future growth.

Downloads

Download data is not yet available.

Article Details

References

Acemoglu, Daron and James A. Robinson (2012) Why nations fail. New York: Crown Business.

Apolte, Thomas (2004) ‘Discussion on Wagener: Buon governo – mal governo‘, in Thomas Eger (ed) Erfolg und Versagen von Institutionen. Berlin: Duncker & Humblot, pp. 141-145.

Annan, Kofi (1999) ‘Address at the World Economic Forum in Davos’, UN Press Release SG/SM/6881. http://www.un.org/News/Press/docs/1999/19990201.sgsm6881.html (consulted 19.03.2013).

Bovaird, Tony and Elke Löffler (2003) ‘Evaluating the Quality of Public Governance: Indicators, Models and Methodologies’, International Review of Administrative Sciences 69(3): 313-328.

Budäus, Dietrich and Birgit Grüb (2007) ‘Anhaltspunkte und Hypothesenbildung für eine Theo¬rie der Public Private Partnership’, in Dietmar Bräunig and Doeothea Greiling (eds) Stand und Perspektiven der Öffentlichen Betriebswirtschaftslehre II. Berlin: Berliner Verlagsgesellschaft, pp. 421-431.

Coase, Ronald H. (1937) ‘The Nature of the Firm”, Economica, 4(16): 386-405.

Dudkin, G. and Välilä, T. (2005) ‘Transaction Costs in Public Private Partnerships: A First Look at the Evidence’, European Investment Bank Economic and Financial Re¬port 2005/03.

Erlei, Mathias, Martin Leschke and Dirk Sauerland (2007) Neue Institutionenökonomik, 2nd edition, Stuttgart: Beck.

Grimsey, Darrin and Mervyn K. Lewis (2005) ‘Introduction’ in Darrin Grimsey and Mervyn K. Lewis (eds) The Economics of Public Private Partnerships. Cheltenham: Edward Elger, pp. xiii-xl.

Gschlößl, Susanne and Claudia Czado (2008) ‘Modelling count data with overdispersion and spatial effects’, Statistical Papers 49:531-552.

Hammami, Mona, Jean-François Ruhashyankiko and Etinne B. Yehoue (2006) ‘Determinants of Public Private Partnerships in Infrastructure’, IMF Working Paper WP/06/99.

Hartwig, Karl-Hans (2005) ‘Infrastrukturpolitik in der Diskussion’, in Karl-Hans Hartwig and Andreas Knorr (eds) Neuere Entwicklungen in der Infrastrukturpolitik. Beiträge aus dem Institut für Verkehrswissenschaften an der Universität Münster. Heft 157. Göttingen, pp. 8-30.

Hart, Oliver (2005) ‘Incomplete Contracts and Public Ownership: Remarks, and an Ap¬pli¬cation to Public-Private Partnerships‘, in Darrin Grimsey and Mervyn K. Lewis (eds) The Economics of Public Private Partnerships, Cheltenham: Edward Elgar, pp. 295-314.

Hodgson, Geoffrey M. (1998) ‘The Approach of Institutional Economics’, Journal of Eco¬no¬mic Literature 36(1): 166-192.

Kaufmann, Daniel, Aart Kraay and Massimo Mastruzzi (2008) Governance Matters VIII: World¬wide Governance Indicators 1996-2008’, Policy Research Working Paper 4654, World Bank Development Research Group.

Klein, Michael, Jae So and Ben Shin (1996) ‘Transaction Costs in Private Infrastructure: Are They Too High?’, Worldbank Private Sector Development Department Viewpoint Note No. 95.

Klein, Peter and Hung Luu (2003) ‘Politics and Productivity‘, Economic Inquiry 41(3): 433-447.

Linder, Stephen H. (1999) ‘Coming to Terms with the Public-Private Partnership: A Grammar of Multiple Meanings’, American Behavioral Scientist 43(1): 35-51.

Long, Scott J. (1997) Regression Models for Categorical and Limited Dependent Variables (Advanced Quantitative Techniques in the Social Sciences), Thousand Oaks: Sage.

Moyo, Dambisa (2009) Dead Aid. Why Aid Is Not Working and How There Is a Better Way for Africa, New York: Farrar, Straus and Giroux.

North, Douglass C. (1991) ‘Institutions‘, Journal of Economic Perspectives, 5(1): 97-112.

North, Douglass C. (1992) Institutionen, institutioneller Wandel und Wirtschaftsleistung, Tü¬bin¬gen: Mohr Siebeck.

Nuscheler, Franz (2005) Entwicklungspolitik, 5th edition. Bonn: BpB

Obinger, Herbert (2001) ‘Demokratie, Institutionen und ökonomische Entwicklung: eine Re¬plik auf Christian Martin und Thomas Plümper’, Swiss Political Science Review 7(3): 81-96.

Organisation for Economic Co-Operation and Development (OECD) (2007) Statistical Annex of the 2007 Development Cooperation Report, Paris,http://www.oecd.org/ dataoecd/52/9/1893143.xls (consulted 13/12/2013).

Parker, David and Keith Hartley (2005) ‘Transaction costs, relational contracting and public private partnerships: a case study of UK defence’ in Darrin Grimsey and Mervyn K. Lewis (eds) The Economics of Public Private Partnerships, Cheltenham and Northampton: Edward Elgar, pp. 303-314.

Richter, Rudolf and Eirik. G. Furubotn (1999) Neue Institutionenökonomik, 2nd edition, Tü¬bin¬gen: Mohr Siebeck.

Sachs, Jeffrey D. and Andrew M. Warner (1997) ‘Natural Resource Abundance and Economic Growth’, Center for International Development and Harvard Institute for Inter¬national Development Discussion Paper, NBER Working Paper 5398.

Schäferhoff, Marco, Sabine Campe and Christopher Kaan (2007) ‘Transnational Public-Private Partner¬ships in International Relations: Making Sense of Concepts, Research Frame¬works and Results’, SFB-Governance Working Paper Series 6.

Smith, Graham R., N. Shafik, P. Guislain and J. A. Reichert (1997) Getting Connected: Private Participation in Infrastructure in the Middle East and North Africa, World Bank Middle East and North Africa Economic Studies, Washington D.C.: World Bank.

United Nations Industrial Development Organization (UNIDO) (2002) UNIDO Business Partnerships for Industrial Development, Vienna.

Van de Walle, Steven (2006) ‘The State of the World’s Bureaucracies’, Journal of Comparative Policy Analysis 8 (4): 437-448.

Voigt, Stefan (2002) Institutionenökonomik, Paderborn: Fink.

Wagener, Hans-Jürgen (2004) ‘Die Bedeutung guter Regierung für Wohlfahrt und Transfor¬mation’, in Thomas Eger (ed.) Erfolg und Versagen von Institutionen, Berlin: Duncker & Humblot, pp. 119-140.

Williamson, Oliver E. (1975) Markets and Hierarchies: Analysis and Antitrust Implications. A Study in the Economics of Internal Organization. New York: Free Press.

Williamson, Oliver E. (1985) The Economic Institutions of Capitalism, Cambridge: Cambridge University Press.

Williamson, Oliver E. (2000) ‘The New Institutional Economics: Taking Stock, Looking Ahead’, Journal of Economic Literature 38(3): 595-613.

World Bank PPI Data Base (ongoing) Private Participation in Infrastructure Database, http://ppi.worldbank.org (consulted 26/12/2013).

Ziekow, Jan (2003) ‘Verankerung verwaltungsverfahrensrechtlicher Kooperationsver¬hält¬¬nisse’, in Jan Ziekow (ed) Public Private Partnership – Projekte, Probleme, Per¬spek¬tiven, Speyer: Speyer University, pp. 25-78.