The New Institutionalism and Africa

R H Bates,A Hoeffler,G Fayad,S A Block

doi:10.1093/jae/ejs031

Abstract

After briefly reviewing the new institutionalism, this article uses the history of political reform in Africa to test its key tenet: that power, if properly organised, is a productive resource. It does so by exploring the relationship between changes in political institutions and changes in economic performance, both at the macro- and the micro level. The evidence indicates that political reform (Granger) causes increases in GDP per capita in the African subset of global data. And, at the micro level, it demonstrates that changes in national political institutions in Africa strongly relate to changes in total factor productivity in agriculture. Copyright 2013 , Oxford University Press.

Highlights

At both the macro- and the micro-level, we find, the evidence supports institutionalist arguments: variation in political institutions bears a systematic, significant and plausibly causal relationship to variation in economic performance
To introduce the new institutionalism, it is useful to juxtapose it against public choice theory – an approach which it has largely eclipsed
Did changes in Africa’s political institutions bear a systematic relationship to changes in the performance of Africa’s rural economy? And, if so, through what mechanism did their impact run? We argue that they did, both directly and through their impact on government policies

Summary

Introduction

At both the macro- and the micro-level, we find, the evidence supports institutionalist arguments: variation in political institutions bears a systematic, significant and plausibly causal relationship to variation in economic performance

Background

Institutions and Development

Evidence from the Micro- Level

Findings

Conclusion