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Essays on Cultural and Institutional Dynamics in Economic Development Using Spatial Analysis

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Essays on Cultural and Institutional Dynamics in Economic Development Using Spatial Analysis by Timothy Birabi Submitted in fulfillment of the requirements for the Degree of Doctor of Philosophy Adam Smith Business School College of Social Sciences University of Glasgow April 2016 ©Timothy Birabi i Abstract This thesis seeks to research patterns of economic growth and development from a number of perspectives often resonated in the growth literature. By addressing themes about history, geography, institutions and culture the thesis is able to bring to bear a wide range of inter-related literatures and methodologies within a single content. Additionally, by targeting different administrative levels in its research design and approach, this thesis is also able to provide a comprehensive treatment of the economic growth dilemma from both cross- national and sub-national perspectives. The three chapters herein discuss economic development from two broad dimensions. The first of these chapters takes on the economic growth inquiry by attempting to incorporate cultural geography within a cross-country formal spatial econometric growth framework. By introducing the global cultural dynamics of languages and ethnic groups as spatial network mechanisms, this chapter is able to distinguish economic growth effects accruing from own-country productive efforts from those accruing from interconnections within a global productive network chain. From this, discussions and deductions about the implications for both developed and developing countries are made as regards potentials for gains and losses from such types and levels of productive integration. The second and third chapters take a different spin to the economic development inquiry. They both focus on economic activity in Africa, tackling the relevant issues from a geo-intersected dimension involving historic regional tribal homelands and modern national and subnational administrative territories. The second chapter specifically focuses on attempting to adopt historical channels to investigate the connection between national institutional quality and economic development in demarcated tribal homelands at the fringes of national African borders. The third chapter on the other hand focuses on looking closer at the effects of demarcations on economic activity. It particularly probes how different kinds of demarcation warranted by two different but very relevant classes of politico-economic players have affected economic activity quite distinguishably within the resulting subnational regions in Africa. i ii Table of Contents ABSTRACT .................................................................................................................................I LIST OF TABLES ........................................................................................................................ V LIST OF FIGURES ..................................................................................................................... VI ACKNOWLEDGEMENT ........................................................................................................... VII AUTHOR’S DECLARATION ....................................................................................................... IX INTRODUCTION ...................................................................................................................... XI WHAT INSTITUTIONS AND CULTURE ARE WITHIN THE CONTEXT OF ECONOMIC DEVELOPMENT ...................... XII INTRODUCING SOME IDEOLOGICAL PERSPECTIVES .................................................................................. XVI CONCLUDING REMARKS ................................................................................................................... XVII THESIS CONTRIBUTION .................................................................................................................... XVIII REFERENCES ................................................................................................................................... XXII CHAPTER ONE: ......................................................................................................................... 1 ECONOMIC GROWTH IN A CULTURALLY INTERCONNECTED GLOBAL ECONOMY ......................... 1 CHAPTER ABSTRACT............................................................................................................................ 1 SECTION 1.1 – INTRODUCTION ............................................................................................................. 2 1.1.1 – Objectives ...................................................................................................................... 2 1.1.2 – Scope and Contribution ................................................................................................. 5 1.1.3 – Overview of Chapter’s Remaining Sections ................................................................. 10 SECTION 1.2 – LITERATURE REVIEW .................................................................................................... 11 1.2.1 – Overview of Some Current Methodological Developments in the Economic Growth Literature ................................................................................................................................. 11 1.2.2 – Economic Growth and Spatial Econometrics ............................................................... 14 SECTION 1.3 – METHODOLOGY .......................................................................................................... 18 1.3.1 – Model Specification ..................................................................................................... 18 1.3.2 – Spatial Weight Matrix Specifications .......................................................................... 22 1.3.3 – Data and Sample ......................................................................................................... 31 SECTION 1.4 – DATA SUMMARY, RESULTS AND INTERPRETATION ............................................................ 34 1.4.1 – Data Summary ............................................................................................................. 34 1.4.2 – Estimations and their Interpretation ........................................................................... 39 1.4.3 – General Implications of the Findings ........................................................................... 48 1.4.4 – Concluding Remarks .................................................................................................... 51 1.4.5 – Some Weaknesses ....................................................................................................... 52 REFERENCES .................................................................................................................................... 55 APPENDIX ....................................................................................................................................... 64 Appendix 1.1 – Definition of Regression Variables .................................................................. 64 Appendix 1.2 – List of Countries Contained in the Analyses’ Sample ...................................... 64 Appendix 1.3 – List of Ethnic Groups adopted in the Regression Analyses ............................. 65 Appendix 1.4 – List of Language Groups adopted in the Regression Analyses ....................... 66 CHAPTER TWO: ...................................................................................................................... 71 INSTITUTIONS AND ECONOMIC DEVELOPMENT IN AFRICA: A HISTORY-GUIDED NEXUS ........... 71 ii iii CHAPTER ABSTRACT.......................................................................................................................... 71 SECTION 2.1 – INTRODUCTION ........................................................................................................... 72 2.1.1 – Objectives .................................................................................................................... 72 2.1.2 – Scope and Contribution ............................................................................................... 73 2.1.3 – Overview of Chapter’s Remaining Sections ................................................................. 75 SECTION 2.2 – BACKGROUND AND LITERATURE REVIEW ......................................................................... 76 2.2.1 – Linking Modern Institutions with Economic Development in Africa ............................ 76 2.2.2 – Review of the Research Design and Objective ............................................................. 77 2.2.3 – Review of the Background to the Theoretical Framework .......................................... 79 SECTION 2.3 – MODEL FRAMEWORK AND DATA SOURCES ...................................................... 83 2.3.1 – The Model .................................................................................................................... 83 2.3.2 – About the Sort of Endogeneity Underpinning Our Research Design ........................... 86 2.3.3 – Exclusion Restriction Condition ................................................................................... 87 2.3.4 – Variables and Data Sources ......................................................................................... 97 2.3.5 – Initial Summary Statistics for Variables of Interest ................................................... 107 SECTION 2.4 – RESULTS AND INTERPRETATION ..................................................................................
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