The estimates of the effect of countries’ institutional quality on their productivity in Alcala and Ciccone “Trade and Productivity” (published in the The Quarterly Journal of Economics in 2004) have found their way into the magazin The Economist via papers by Kauffman, Mastruzzi, and Kraay.
- Economics and the rule of law (Economist article, 13 March 2008)
- One Rule for the Rich (Economist article, 13 March 2008)
- Another interesting paper on institutions and productivity by Kauffman, Mastruzzi, and Kraay
- The seminal papers in this literature (not mentioned in Economist articles) are “Why Do Some Countries Produce So Much More Output Per Worker Than Others?” by Hall and Jones (published in The Quarterly Journal of Economics in 1999) and by “The Colonial Origin of Comparative Development: An Empirical Investigation” by Acemoglu, Johnson, and Robinson (published in The American Economic Review in 2001).
- “Trade and Productivity” by Alcala and Ciccone (published in the The Quarterly Journal of Economics in 2004). The main point of this article was to show that international trade has a strong effect on countries’ productivity. The analysis also takes into account countries’ institutional quality levels, and ends up showing that both trade and institutions matter. For the 2001 version of this article see Trade and Productivity.