Citation Context

... accountability and to develop the deep civil society and horizontal social associations that many feel are the preconditions of democracy (see, among others, Inglehart 1997; Lipset 1959; Moore 1966; =-=Putnam 1993-=-). Second, with the ‘‘exogenous’’ revenues the government can mollify dissent through a variety of mechanisms (buying off critics, providing the population with benefits, infrastructure projects, patr...

Citation Context

...e does not offer any novel claims about the relative importance of institutions for economic performance: for at least a decade a range of econometric studies have fruitfully explored this link (from =-=Knack and Keefer 1995-=- -4 -2 0 2 4 6 1962 1967 1972 1977 1982 1987 1992 1997 S m o o th e dsm e d ia nsp e rsc a p it asg ro w thsr a te s Diffuse (N=18) Point Source (N=45) Coffee/Cocoa (N=18) Manufacturing (N=9) FIGURE 2...

Citation Context

... affects institutions.29 Intuitively, the test is an F-test of the inclusion of the four export composition indices in the growth regression with a consistent estimate for the effect of institutions (=-=Davidson and MacKinnon 1993-=-; Hausman and Taylor 1981). The tests show no evidence that export composition should be included in the growth regression (appendix table A.3). The results reported in this section constitute the eco...

Citation Context

... Tornell and Lane (1999) for a model of how special interests can dampen economic growth. On the institutional side, their argument is very much in the spirit of this article. They also note (echoing =-=Barro 1997-=-) that one possible explanation for the distributive struggle in many countries is the attempt to appropriate rents generated by natural resource endowments. 13. For instance, one of several possible ...

Citation Context

...ses about their permission/assistance in taxation (classic case: England), (b) an increasingly powerful sovereign extracted resources directly (classic case: France), or (c) an inability to mobilize revenues because of conflicts between sovereign and nobles meant that eventually one got gobbled (classic cases: Poland, Hungary). 6 to develop mechanisms of deep control of the citizenry. By the same token, citizens have less incentive to create mechanisms of accountability and develop the deep “civil society” and horizontal social associations that many feel are the “preconditions” of democracy (Lipset 1959, Moore 1966, Putnam 1993, and Inglehart 1997). Second, with the “exogenous” revenues, the government can mollify dissent through a variety of mechanisms (buying off critics, providing the population with benefits, infrastructure projects, patronage, or outright graft). Third, the state has resources to pursue direct repression and violence against dissenters. Delayed Modernization: For influential scholars such as Barrington Moore (1966), the story of wealth, power, and political and economic transformation begins with some smallish group of elites owning the most valuable resources (usually ...

Citation Context

.... 29. It is usually difficult, if not impossible, to find instruments that are correlated with the regressors but not with economic growth, due to the inherent endogeneity of macroeconomic variables (=-=Temple 1999-=-). Following Hall and Jones (1990), however, the clearly exogenous English language, European language, and distance from equator instruments are ideal for the endogenous regressors of interest, the i...

Citation Context

...echanisms of accountability and to develop the deep civil society and horizontal social associations that many feel are the preconditions of democracy (see, among others, Inglehart 1997; Lipset 1959; =-=Moore 1966-=-; Putnam 1993). Second, with the ‘‘exogenous’’ revenues the government can mollify dissent through a variety of mechanisms (buying off critics, providing the population with benefits, infrastructure p...

Citation Context

...this challenge’’ (Agence France Press 2004). Both resource scarcity and abundance have been cited as a primary cause of civil war. Some have argued that land scarcity is behind the Rwandan conflicts (=-=Diamond 2005-=-; Klare 2001), but resource-rich countries have not escaped civil strife. Countries such as Angola have been embroiled in conflict since the mid1970s, and the problem there is not scarce land but rath...

Citation Context

...itively, the test is an F-test of the inclusion of the four export composition indices in the growth regression with a consistent estimate for the effect of institutions (Davidson and MacKinnon 1993; =-=Hausman and Taylor 1981-=-). The tests show no evidence that export composition should be included in the growth regression (appendix table A.3). The results reported in this section constitute the econometric punch line of th...

Citation Context

...ve less incentive to create mechanisms of accountability and to develop the deep civil society and horizontal social associations that many feel are the preconditions of democracy (see, among others, =-=Inglehart 1997-=-; Lipset 1959; Moore 1966; Putnam 1993). Second, with the ‘‘exogenous’’ revenues the government can mollify dissent through a variety of mechanisms (buying off critics, providing the population with b...

Citation Context

...le presents econometric evidence to support the hypothesis not only that institutional capacity to handle shocks is a determinant of economic growth since the commodity shocks of the 1970s and 1980s (=-=Rodrik 1999-=-) but also that institutional capacity itself varies and that export structures influence socioeconomic and political institutions. The growth performance facts that the analysis is trying to (partial...

Citation Context

...ral resources are 9 There are many variants on the way in which resources delay modernization, which center on different connections between states and elites. The state can own the rents and a regime of rentier autocrats emerges, as with Algeria and Nigeria; or rentier capitalists can effectively own the state, as in Angola and El Salvador, and oligarchic regimes emerge. 10 From this perspective, the warmer southern states in North America, with their plantation crops (tobacco) and enduring commitment to slavery, were a microcosm of the larger contrast between North and South America. 11 See Tornell and Lane (1999) for a model of how special interests can dampen economic growth. On the institutional side, their argument is very much in the spirit of this paper: they also note (echoing Barro 1997) that one possible explanation for the distributive struggle in many countries is the attempt to appropriate rents generated by natural resource endowments. 9 thus predisposed to generating an influence on the long-run level of development; therefore, North America’s resource base enabled it to become rich, but South America’s did not.12 The social dimension of “entrenched inequality” is such that some areas of ...

Citation Context

...ntries, such as Jamaica and Zimbabwe). In short, resource abundance simultaneously strengthens states and weakens societies and thus yields—or at least perpetuates—low levels of development (see also =-=Migdal 1988-=-).10 Entrenched Inequality The entrenched inequality effect refers to the ways in which export composition influences economic and political outcomes by affecting the social structure. Economic histor...

Citation Context

...crops 4 According to the chief UN representative in Azerbaijan, “This wealth ... will create a lot of problems. It will increase the already substantial gap between the rich and poor, and eventually it will affect political stability” (Kinzer 1999). 5 Columbine-tantalite (Col-tan) has recently been declared “the wonder mineral of the moment”: when processed, it is vital for the manufacture of capacitors and other high tech products. 6 The most recent literature on the effects of natural resources on growth includes Auty 1995; 2001; Leamer et al. 1999; Leite and Weidmann 1999; Ross 1999, 2001; Sachs and Warner 1995 [2000], 1999; Stijns 2001; Nugent and Robinson 2001; Gylfason and Zoega 2002; Lederman and Maloney 2002. 3 (e.g., bananas)—is strongly associated with weak public institutions which are, in turn, strongly associated with slower growth. This paper presents econometric evidence to support the hypothesis that not only is institutional capacity to handle shocks a determinant to economic growth since the “commodity shocks” of the 1970s and 1980s (Rodrik 1999), but that institutional capacity itself varies across economies with different sources of export revenue, and that it is these export struct...

Citation Context

...ountries with such better institutions than countries with worse institutions. V: Discussion and Conclusion At first glance, ours are stultifying results for the policymaker: like Putnam’s (1993) medieval guilds and choral societies, it is hard to imagine how a policymaker interested in accelerating growth can change what we have identified as one possible underlying cause of poor performance—a country’s natural resource endowment makes for poor institutions. We admit it is hard to get beyond this first glance. But here is why we think it is important to shed light on these results. The World Bank (1998) illustrated the power of institutions in development assistance, and what donors should (and most importantly, should not) do in the face of varied institutional performance among potential aid recipients. Our results suggest how entrenched—and “environmentally determined”—poor institutions can be (cf. Wade (1988), at micro level). So these results, in a certain sense, further raise cautions about casual attempts at institutional reform. Poor institutions are deeply rooted. Where others (e.g., Rodrik 1999) have shown how important institutional quality and social inclusion are to managing gro...

Citation Context

...d not) do in the face of varied institutional performance among potential aid recipients. The results here suggest how entrenched—and environmentally determined—poor institutions can be (compare with =-=Wade 1988-=-, at the micro level). So these results raise further cautions about casual attempts at institutional reform (Murshed 2003). Poor institutions are deeply rooted. Where others (such as Acemoglu and oth...

Citation Context

... the effects of natural resources on growth includes Auty 1995; 2001; Leamer et al. 1999; Leite and Weidmann 1999; Ross 1999, 2001; Sachs and Warner 1995 [2000], 1999; Stijns 2001; Nugent and Robinson 2001; Gylfason and Zoega 2002; Lederman and Maloney 2002. 3 (e.g., bananas)—is strongly associated with weak public institutions which are, in turn, strongly associated with slower growth. This paper presents econometric evidence to support the hypothesis that not only is institutional capacity to handle shocks a determinant to economic growth since the “commodity shocks” of the 1970s and 1980s (Rodrik 1999), but that institutional capacity itself varies across economies with different sources of export revenue, and that it is these export structures that influence socioeconomic and political institutions. Figures 1 and 2 (from Woolcock, Pritchett, and Isham 2001) illustrate the growth performance facts we are trying to (partially) explain. Figure 1 shows the smoothed (over three years) median developing country annual growth rate of GDP per capita. From the mid 1950s until the late 1970s this was consistently above 2 percent. But since 1980 the developing economies have suffered a growth collaps...

Citation Context

...e to create mechanisms of accountability and to develop the deep civil society and horizontal social associations that many feel are the preconditions of democracy (see, among others, Inglehart 1997; =-=Lipset 1959-=-; Moore 1966; Putnam 1993). Second, with the ‘‘exogenous’’ revenues the government can mollify dissent through a variety of mechanisms (buying off critics, providing the population with benefits, infr...

Citation Context

... hospitals, and roads, no formal plans are in the offing; meanwhile, neighboring Caspian Sea nations are despotically ruled, ethnically divided, and weakened by corruption—problems some fear will be made worse by oil. 4 The controversy over the construction of the pipeline in Chad demonstrates that even in an extraordinarily poor country, not all believe that additional wealth pouring into government coffers will lead to better times. Both resource scarcity and abundance have been cited as a primary cause of civil war. Some have argued that land scarcity is behind the Rwandan conflicts (e.g., Klare 2001), but resource-rich countries have not escaped civil strife. Angola has been embroiled in conflict since the mid 1970s, and the “problem” there is not scarce land, but rather abundant sources of oil and some of the world’s best diamonds (Campbell 2002). Just as revenues from diamonds, timber, coffee, and gold in the eastern half strengthened (then) Zaire’s elite, revenues from Col-tan are now strengthening the rebel Rally for Congolese Democracy. 5 Rebels in Sierra Leone are financed from diamond mines, and are perhaps fighting over nothing else except control over them. What mechanisms might ...

Citation Context

... Those in resource-rich economies tend to secure revenues by extracting them; those in resource-poor nations, by promoting the creation of wealth. Differences in natural endowments thus appear to shape the behavior of governments. Robert Bates, Prosperity and Violence: The Political Economy of Development3 Introduction Is oil wealth a blessing or curse? Norway provides a hopeful example, but Azerbaijanis are rightly concerned whether their country can handle the potential bonanza from newly discovered oil fields. While government officials have promised that oil revenues will go to 1 Cited in Ross (2001: 329, fn. 6) 2 Karl (1997: 13) 3 Bates (2001: 107, fn. 1) 2 schools, hospitals, and roads, no formal plans are in the offing; meanwhile, neighboring Caspian Sea nations are despotically ruled, ethnically divided, and weakened by corruption—problems some fear will be made worse by oil. 4 The controversy over the construction of the pipeline in Chad demonstrates that even in an extraordinarily poor country, not all believe that additional wealth pouring into government coffers will lead to better times. Both resource scarcity and abundance have been cited as a primary cause of civil war. Some h...

Citation Context

..., and plantation crops 4 According to the chief UN representative in Azerbaijan, “This wealth ... will create a lot of problems. It will increase the already substantial gap between the rich and poor, and eventually it will affect political stability” (Kinzer 1999). 5 Columbine-tantalite (Col-tan) has recently been declared “the wonder mineral of the moment”: when processed, it is vital for the manufacture of capacitors and other high tech products. 6 The most recent literature on the effects of natural resources on growth includes Auty 1995; 2001; Leamer et al. 1999; Leite and Weidmann 1999; Ross 1999, 2001; Sachs and Warner 1995 [2000], 1999; Stijns 2001; Nugent and Robinson 2001; Gylfason and Zoega 2002; Lederman and Maloney 2002. 3 (e.g., bananas)—is strongly associated with weak public institutions which are, in turn, strongly associated with slower growth. This paper presents econometric evidence to support the hypothesis that not only is institutional capacity to handle shocks a determinant to economic growth since the “commodity shocks” of the 1970s and 1980s (Rodrik 1999), but that institutional capacity itself varies across economies with different sources of export revenue, and t...

Citation Context

...icro level). So these results raise further cautions about casual attempts at institutional reform (Murshed 2003). Poor institutions are deeply rooted. Where others (such as Acemoglu and others 2004; =-=Pritchett 2000-=-; Rodrik 1999) have shown how important institutional quality and social inclusion are to managing long-run growth generally and growth volatility in particular, these results push the chain of causat...

Citation Context

... (e.g., copper, diamonds), and plantation crops 4 According to the chief UN representative in Azerbaijan, “This wealth ... will create a lot of problems. It will increase the already substantial gap between the rich and poor, and eventually it will affect political stability” (Kinzer 1999). 5 Columbine-tantalite (Col-tan) has recently been declared “the wonder mineral of the moment”: when processed, it is vital for the manufacture of capacitors and other high tech products. 6 The most recent literature on the effects of natural resources on growth includes Auty 1995; 2001; Leamer et al. 1999; Leite and Weidmann 1999; Ross 1999, 2001; Sachs and Warner 1995 [2000], 1999; Stijns 2001; Nugent and Robinson 2001; Gylfason and Zoega 2002; Lederman and Maloney 2002. 3 (e.g., bananas)—is strongly associated with weak public institutions which are, in turn, strongly associated with slower growth. This paper presents econometric evidence to support the hypothesis that not only is institutional capacity to handle shocks a determinant to economic growth since the “commodity shocks” of the 1970s and 1980s (Rodrik 1999), but that institutional capacity itself varies across economies with different sources of export rev...

Citation Context

...th a negative link between particular types of resources and government capacity. Rentier States: Political scientists generally—and area specialists in particular—argue that certain natural resources undermine development through what they term “rentier effects” (Ross 2001).7 When revenues can be easily extracted from a few sources that are easily controlled, there are three consequences. First, for any given revenue target, the state has less need for taxation of the population and, without the pressure for taxation, the state has less need 7 Some historians of the early modern state (e.g., Tilly 1992) argue that the increasing cost of modern armies led to greater demands on the state’s ability to raise revenues, which led to one of several outcomes. States with access to exogenous resources (e.g., the Spanish crown) did not have to extract resources from the domestic population and so did not develop any of the forms of the modern state. In other cases, either (a) an accommodation was reached between the s overeign and other classes about their permission/assistance in taxation (classic case: England), (b) an increasingly powerful sovereign extracted resources directly (classic case: Franc...

Citation Context

...citizens are therefore less able to effectively and peacefully voice their collective interests, preferences, and grievances (even in nominally democratic countries such as Zimbabwe and Jamaica). In short, resource abundance simultaneously “strengthens states” and 8 “weakens societies,” and thus yields—or at least perpetuates—low levels of development (cf. Migdal 1988).9 Entrenched Inequality: The “entrenched inequality” effect occurs when the export composition affects economic and political outcomes by affecting the social structure. Economic historians Engerman and Sokoloff (1997; see also Sokoloff and Engerman 2000) argue that the diverging growth trajectories of South and North America over the last two hundred years can be explained by reference to the types of crops grown, the extent of property rights regimes enacted to secure their sale, and the timing and nature of colonization. In North America, crops such as wheat and corn were grown on small family farms, cultivatable land was relatively abundant, but de-colonization occurred early and innovative property rights ensured that land (and assets more generally) could be sold on an open market. In South America, by contrast, crops such as sugar, coff...

Citation Context

...tures exporters appear tos15sThese “institutional” variables that have been used recently in a set of papers on the institutionalsdeterminants of economic growth (Knack and Keefer 1995; Rodrik 1999a, =-=Kaufmann et al. 2000-=-; Dollar 2000,sRitzen, Easterly and Woolcock 2000, and Easterly 2001).sGrowth rate data for the period 1957-1997 was compileds16shave higher institutional quality—the indicator is lower among the reso...

Citation Context

...presentative in Azerbaijan, “This wealth ... will create a lot of problems. It will increase the already substantial gap between the rich and poor, and eventually it will affect political stability” (Kinzer 1999). 5 Columbine-tantalite (Col-tan) has recently been declared “the wonder mineral of the moment”: when processed, it is vital for the manufacture of capacitors and other high tech products. 6 The most recent literature on the effects of natural resources on growth includes Auty 1995; 2001; Leamer et al. 1999; Leite and Weidmann 1999; Ross 1999, 2001; Sachs and Warner 1995 [2000], 1999; Stijns 2001; Nugent and Robinson 2001; Gylfason and Zoega 2002; Lederman and Maloney 2002. 3 (e.g., bananas)—is strongly associated with weak public institutions which are, in turn, strongly associated with slower growth. This paper presents econometric evidence to support the hypothesis that not only is institutional capacity to handle shocks a determinant to economic growth since the “commodity shocks” of the 1970s and 1980s (Rodrik 1999), but that institutional capacity itself varies across economies with different sources of export revenue, and that it is these export structures that influence socioe...

Citation Context

...oted by an anonymous referee, some of the recent growth literature has used recursive seemingly unrelated regression (SUR) estimation for models that include natural resource endowments (for example, =-=Gylfason and Zoega 2001-=-), which is one approach to addressing the simultaneity problem that might otherwise bias such results. There were no substantial differences in the reported results when the model was reestimated usi...

Citation Context

...uch as oil, minerals (e.g., copper, diamonds), and plantation crops 4 According to the chief UN representative in Azerbaijan, “This wealth ... will create a lot of problems. It will increase the already substantial gap between the rich and poor, and eventually it will affect political stability” (Kinzer 1999). 5 Columbine-tantalite (Col-tan) has recently been declared “the wonder mineral of the moment”: when processed, it is vital for the manufacture of capacitors and other high tech products. 6 The most recent literature on the effects of natural resources on growth includes Auty 1995; 2001; Leamer et al. 1999; Leite and Weidmann 1999; Ross 1999, 2001; Sachs and Warner 1995 [2000], 1999; Stijns 2001; Nugent and Robinson 2001; Gylfason and Zoega 2002; Lederman and Maloney 2002. 3 (e.g., bananas)—is strongly associated with weak public institutions which are, in turn, strongly associated with slower growth. This paper presents econometric evidence to support the hypothesis that not only is institutional capacity to handle shocks a determinant to economic growth since the “commodity shocks” of the 1970s and 1980s (Rodrik 1999), but that institutional capacity itself varies across economies with differ...

Citation Context

...f problems. It will increase the already substantial gap between the rich and poor, and eventually it will affect political stability” (Kinzer 1999). 5 Columbine-tantalite (Col-tan) has recently been declared “the wonder mineral of the moment”: when processed, it is vital for the manufacture of capacitors and other high tech products. 6 The most recent literature on the effects of natural resources on growth includes Auty 1995; 2001; Leamer et al. 1999; Leite and Weidmann 1999; Ross 1999, 2001; Sachs and Warner 1995 [2000], 1999; Stijns 2001; Nugent and Robinson 2001; Gylfason and Zoega 2002; Lederman and Maloney 2002. 3 (e.g., bananas)—is strongly associated with weak public institutions which are, in turn, strongly associated with slower growth. This paper presents econometric evidence to support the hypothesis that not only is institutional capacity to handle shocks a determinant to economic growth since the “commodity shocks” of the 1970s and 1980s (Rodrik 1999), but that institutional capacity itself varies across economies with different sources of export revenue, and that it is these export structures that influence socioeconomic and political institutions. Figures 1 and 2 (from Woolcock, Pritchett,...

Citation Context

...in Azerbaijan, “This wealth ... will create a lot of problems. It will increase the already substantial gap between the rich and poor, and eventually it will affect political stability” (Kinzer 1999). 5 Columbine-tantalite (Col-tan) has recently been declared “the wonder mineral of the moment”: when processed, it is vital for the manufacture of capacitors and other high tech products. 6 The most recent literature on the effects of natural resources on growth includes Auty 1995; 2001; Leamer et al. 1999; Leite and Weidmann 1999; Ross 1999, 2001; Sachs and Warner 1995 [2000], 1999; Stijns 2001; Nugent and Robinson 2001; Gylfason and Zoega 2002; Lederman and Maloney 2002. 3 (e.g., bananas)—is strongly associated with weak public institutions which are, in turn, strongly associated with slower growth. This paper presents econometric evidence to support the hypothesis that not only is institutional capacity to handle shocks a determinant to economic growth since the “commodity shocks” of the 1970s and 1980s (Rodrik 1999), but that institutional capacity itself varies across economies with different sources of export revenue, and that it is these export structures that influence socioeconomic and political inst...

Citation Context

...sive: while “diffuse” exporters tend to have better institutional quality, the differences are small and not statistically significant. 15 These “institutional” variables have been used recently in a set of papers on the institutional determinants of economic growth (Knack and Keefer 1995; Rodrik 1999; Kaufmann et al. 2000; Dollar and Kraay 2003; Ritzen, Easterly, and Woolcock 2000; and Easterly 2001). Growth rate data for the period 1957–1997 was compiled from the Penn World Tables and the World Development Indicators (World Bank 1999). Measures of social and political data were adapted from Kaufmann et al. (2002), Easterly (2001), and World Bank (2002). 16 From the KKZ data, “rule of law,” ”political instability,” “government effectiveness,” and “control of corruption”; from ICRG, “law and order tradition” and “quality of the bureaucracy.” 15 Table 3: Institutional quality and export composition among ninety developing economies Resource-exporter Type of resource exports: Exporters of manufactures All RE Diffuse Point source Coffee/ cocoa Number of countries: 9 81 18 45 18 Source Variable Rule of law 0.33 -0.45 ** -0.40 -0.40 -0.66 Political instability and violence 0.28 -0.38 * -0.27 -0.40 -0.43 Gove...

Citation Context

...n. After the government was restored, Prime Minister Maria das Neves stated: ‘‘Oil could be our heaven, purgatory or hell; it all depends on how São Tomé faces up to this challenge’’ (Agence France =-=Press 2004-=-). Both resource scarcity and abundance have been cited as a primary cause of civil war. Some have argued that land scarcity is behind the Rwandan conflicts (Diamond 2005; Klare 2001), but resource-ri...

Citation Context

...rst, the article makes no claim that 3. The most recent literature on the effects of natural resources on growth includes Auty (1995, 2001b); Leamer and others (1999); Leite and Weidmann (1999); Ross =-=(1999, 2001)-=-; Sachs and Warner (1995, 1999); Stijns (2001); Nugent and Robinson (2001); Gylfason (2001); Gylfason and Zoega (2001, 2002); Lederman and Maloney (2002); Easterly and Levine (2002); Murshed (2003); S...

Citation Context

...rst, the article makes no claim that 3. The most recent literature on the effects of natural resources on growth includes Auty (1995, 2001b); Leamer and others (1999); Leite and Weidmann (1999); Ross =-=(1999, 2001)-=-; Sachs and Warner (1995, 1999); Stijns (2001); Nugent and Robinson (2001); Gylfason (2001); Gylfason and Zoega (2001, 2002); Lederman and Maloney (2002); Easterly and Levine (2002); Murshed (2003); S...

Citation Context

...entative in Azerbaijan, ‘‘This wealth . . . will create a lot of problems. It will increase the already substantial gap between the rich and poor, and eventually it will affect political stability’’ (=-=Kinzer 1999-=-). 2. Coltan has recently been declared the ‘‘wonder mineral of the moment’’ (Vick 2001, p. A1). When processed, it is vital for the manufacture of capacitors and other high-tech products. 142 THE WOR...

Citation Context

... to the fact that any natural resource has the same impact.21 Estimation of equation 1, to establish whether measures of the natural resource endowment (using the four indices derived from Statistics =-=Canada 2002-=- data) predict the nature of socioeconomic and political institutions,22 show that neither the manufactures index nor the diffuse index are statistically significant predictors of any of the six insti...

Citation Context

...ed revenues—and the institutions that they have sustained—are likely to weaken in the near future. Accordingly, he is attempting reform from within and has decreed that Qatar will become a democracy (=-=Weaver 2000-=-). 31. Similarly, in their recent article on the primacy of institutions over geography for economic growth, Rodrik and others (2004, p. 157) observe that ‘‘the operational guidance that our central r...

Citation Context

... institutional quality, the differences are small and not statistically significant. 15 These “institutional” variables have been used recently in a set of papers on the institutional determinants of economic growth (Knack and Keefer 1995; Rodrik 1999; Kaufmann et al. 2000; Dollar and Kraay 2003; Ritzen, Easterly, and Woolcock 2000; and Easterly 2001). Growth rate data for the period 1957–1997 was compiled from the Penn World Tables and the World Development Indicators (World Bank 1999). Measures of social and political data were adapted from Kaufmann et al. (2002), Easterly (2001), and World Bank (2002). 16 From the KKZ data, “rule of law,” ”political instability,” “government effectiveness,” and “control of corruption”; from ICRG, “law and order tradition” and “quality of the bureaucracy.” 15 Table 3: Institutional quality and export composition among ninety developing economies Resource-exporter Type of resource exports: Exporters of manufactures All RE Diffuse Point source Coffee/ cocoa Number of countries: 9 81 18 45 18 Source Variable Rule of law 0.33 -0.45 ** -0.40 -0.40 -0.66 Political instability and violence 0.28 -0.38 * -0.27 -0.40 -0.43 Government effectiveness 0.32 -0.41 * -0.45 ...