Good and bad institutions:is the debate over? Cross-country firm-level evidence from the textile industry

Abstract

Using firm-level data from nine developing countries, we demonstrate that certain institutions, like restrictive labour market regulations, that are considered bad for economic growth might be beneficial for production efficiency, whereas good business environment, which is considered beneficial for economic growth, might have an adverse impact on production efficiency. We argue that our results suggest that there might be significant difference in the macro- and micro-impacts of institutional quality, such that the classification of institutions into 'good' and 'bad might be premature.

Publication DOI: https://doi.org/10.1093/cje/bes089
Divisions: College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship
College of Business and Social Sciences > Aston Business School > Aston India Foundation for Applied Research
College of Business and Social Sciences > Aston Business School
Additional Information: This is a pre-copyedited, author-produced PDF of an article accepted for publication in Cambridge journal of economics] following peer review. The version of record Bhaumik, S. K., & Dimova, R. (2014). Good and bad institutions – is the debate over? Cross-country firm-level evidence from the textile industry. Cambridge journal of economics, 38(1), 109-126 is available online at: http://cje.oxfordjournals.org/content/38/1/109
Uncontrolled Keywords: institutional quality,production efficiency,stochastic frontier model,Economics and Econometrics
Full Text Link: http://cje.oxfo ... ontent/38/1/109
Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
PURE Output Type: Article
Published Date: 2014
Published Online Date: 2013-05-24
Authors: Bhaumik, Sumon Kumar (ORCID Profile 0000-0002-4459-3659)
Dimova, Ralitza

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