Research Project Workshop At SOAS University of London

Research Project Workshop At SOAS University of London, March 3 rd – 4 th 2017 DEGRP: DFID-ESRC Growth Research Programme, Call 3 Building Datasets on Institutional Quality Indicators for Africa Victor Murinde & associates, University of Birmingham & collaborating institutions ESRC Reference - ES/N 013344/1: Delivering Inclusive Financial Development and Growth Research Project Workshop SOAS University of London 3 rd – 4 th March, 2017

Institutional Quality Indicators

Institutional Proxies (1) Institutional group and measure Source Code Start Date Index of economic freedom property rights The Heritage Foundation and WSJ L 1 1995 Freedom of the press: legal environment Freedom House L 2 1980 Freedom in the world: civil liberties Freedom House L 3 1973 EFW index: judical independence Fraser Institute L 4 1970 EFW index: impartial courts Fraser Institute L 5 1970 EFW index: protection of property rights Fraser Institute L 6 1970 Law and order ICRG L 7 1984 Religion in politics ICRG L 8 1984 Rule of law WB WGI L 9 1996 Legal Institutions Source: Table 1 of KunČIČ, A. (2014). Institutional quality dataset. Journal of Institutional Economics, 10(1), 135 -161.

Institutional Proxies (2) Institutional group and measure Source Code Start Date Freedom of the press: political environment Freedom House P 1 1980 Freedom in the world: political rights Freedom House P 2 1973 Institutionalized democracy-institutionalized autocracy Polity IV P 3 1800 Checks and balances WB DPI P 4 1975 Democratic accountability ICRG P 5 1984 Corruption ICRG P 6 1984 Bureaucratic accountability ICRG P 7 1984 Internal conflict ICRG P 8 1984 Military in politics ICRG P 9 1984 Control of crruption WB WGI P 10 1996 Corruption perceptions index Transparency international P 11 1995 Political terror scale P 12 1976 Political institutions Source: Table 1 of KunČIČ, A. (2014). Institutional quality dataset. Journal of Institutional Economics, 10(1), 135 -161.

Institutional Proxies (3) Institutional group and measure Source Code Start Date Index of economic freedom: financial freedom The heritage Foundation and WSJ E 1 1995 Index of economic freedom: business freedom The heritage Foundation and WSJ E 2 1995 Regulatory quality WB WGI E 3 2005 Freedom of the press: economic environment Freedom House E 4 1980 EFW index: freedom to own foreign currency bank accounts Fraser Institute E 5 1970 EFW index: regulation of credit, labor, and business: credit market regulations Fraser Institute E 6 1970 EFW index: regulation of credit, labor, and business: labor market regulations Fraser Institute E 7 1970 EFW index: regulation of credit, labor, and business: business regulations Fraser Institute E 8 1970 EFW index: foreign ownership/investment restrictions Fraser Institute E 9 1970 EFW index: capital controls Fraser Institute E 10 1970 Investment profile ICRG E 11 1984 Economic institutions Source: Table 1 of KunČIČ, A. (2014). Institutional quality dataset. Journal of Institutional Economics, 10(1), 135 -161.

New Institutional World Order Source: Figure 1 of KunČIČ, A. (2014). Institutional quality dataset. Journal of Institutional Economics, 10(1), 135 -161.

Cluster Memberships (Number of Countries) 1 (N = 28) 2 (N = 42) 3 ( N=12) 4 (N = 26) 5 (N =18) Angola Albania Peru UAE Bahamas Australia Azerbaijan Argentina Philippines Bahrain Botswana Austria Bangladesh Armenia Papua New G. Hong Kong Chile Belgium China Burkina Faso Paraguay Jordan Costa Rita Canada Cote d'Ivoire Bulgaria Romania Kuwait Cyprus Switzerland Cameroon Bolivia Russia Morocco Czech Republic Germany Republic of Congo Brazil El Salvador Malaysia Spain Denmark Algeria Colombia Serbia Oman Estonia Finland Egypt Dominican R. Thailand Qatar France United Kingdom Ethiopia Ecuador Turkey Saudi Arabia Greece Ireland Guinea-Bissau Gabon Tanzania Singapore Hungary Iceland Haiti Ghana Ukraine Tunisia Isreal Japan Indonesia Guatemala Venezuela Italy Luxembourg Iran Guyana Zambia South Korea Netherlands Kazakhstan Honduras Lithuania Norway Kenya Croatia Latvia New Zealand Burma India Malta Sweden Niger Jamaica Namibia United States Nigeria Sri Lanka Poland Pakistan Moldova Portugul Senegal Mexico Slovakia Sierra Leone Mali Slovenia Syria Mongolia Trinidad and Tobago Togo Mozambique Taiwan Uganda Malawi Uruguay Vietnam Nicaragua South Africa DR of Congo Panama Zimbabwe Source: Table 2 of KunČIČ, A. (2014). Institutional quality dataset. Journal of Institutional Economics, 10(1), 135 -161.

Correlations of institutional measures Legal institutional quality Political institutional quality Economic institutional quality Legal institutional quality 1. 00 Political institutional quality 0. 92 1. 00 Economic institutional quality 0. 83 0. 81 1. 00 Real GDP per capita 0. 75 0. 68 0. 71 Legal institutional quality (absolute) 0. 96 0. 92 0. 81 Political institutional quality (absolute) 0. 90 0. 99 0. 79 Economic institutional quality (absolute) 0. 68 0. 73 0. 89 WGI mean 0. 97 0. 94 0. 91 Institutional climate index 0. 77 0. 76 GCI 0. 86 0. 74 0. 80 GCI: first pillar - institutions 0. 92 0. 71 0. 78 Source: Table 4 of KunČIČ, A. (2014). Institutional quality dataset. Journal of Institutional Economics, 10(1), 135 -161.

Availability and cost • All the afore mentioned databases have free access except for ICRG database. • The price for purchasing the whole ICRG database is $6, 100. 00 The URL for subscription is: http: //epub. prsgroup. com/products/international-country-risk-guide-icrg • The price for purchasing the Table 3 B (Political Risk Ratings) of ICRG only is $565. 00. (Table 3 B is also one of the databases applied in article "Institutional quality dataset") e URL for subscription is: http: //epub. prsgroup. com/products/icrg/researcher-dataset-icrg-t 3 b-political-risk Th

Going Forward • Complete the datasets for all African countries by October 2017 • Upload the data on research project webpage • Empirical work, 2017 -2020

END • Questions & Comments welcome