Institutional Transformations, Polity and Economic Outcomes : Testing the North-Wallis-Weingast Doorsteps Framework

Author/Editor:

Marc G Quintyn ; Sophia Gollwitzer

Publication Date:

March 1, 2012

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper tests the theoretical framework developed by North, Wallis and Weingast (2009) on the transition from closed to open access societies. They posit that societies need to go through three doorsteps: (i) the establishment of rule of law among elites; (ii) the adoption of perpetually existing organizations; and (iii) the political control of the military. We identify indicators reflecting these doorsteps and graphically test the correlation between them and a set of political and economic variables. Finally, through Identification through Heteroskedasticity we test these relationships econometrically. The paper broadly confirms the logic behind the doorsteps as necessary steps in the transition to open access societies. The doorsteps influence economic and political processes, as well as each other, with varying intensity. We also identify income inequality as a potentially important force leading to social change.

Series:

Working Paper No. 12/87

English

Publication Date:

March 1, 2012

ISBN/ISSN:

9781475502510/1018-5941

Stock No:

WPIEA2012087

Format:

Paper

Pages:

58

Please address any questions about this title to publications@imf.org