Hi all,
I wish to incorporate the variable(s) that represent governance as an explanatory variable for agricultural productivity? How the term "governance" could be related here? Can someone suggest few variables that can be used as proxies?
You can use some of the indicators in the International Country Risk Guide. Several of them, like Rule of Law or Investor Profile, are associated to good governance.
Perhaps you could use fiscal policy with respect to agricultural subsidies and expenditures as a proxy - in the US, this variable is quite significant.
You can use some of the indicators in the International Country Risk Guide. Several of them, like Rule of Law or Investor Profile, are associated to good governance.
Well, if you look a the issue with the eyes of the past, then, of course, you can be worried about the relevant variables, the distinction between dependent and independent variables, and the capacity to number them in some relevant way.
However, if you look at the issue with the eyes of spearhead research, then literally there are numerous variables. My own suggestion would then be: let's tackle the problem within the framework of data science. If so, each variable is a data - which radically changes the problem.
Are we understanding and tackling real current problems with the eyes of the past, or else, can we shift our own way of looking at the problems, and then step on to the new paths of research?
Hello,
probably, you have done it already, have a look here: http://info.worldbank.org/governance/wgi/index.aspx#home
Janna
All previous posts gave useful advices. I would only suggest to check the Fraser Institute indicators as well. Though explicitly focused on economic freedom and related issues, the rule of law indicator can provide information on governance as well.
See http://www.fraserinstitute.org/programs-initiatives/economic-freedom.aspx
In the broad way the question itself is posed, I would say that you have three concepts that capture the core of "governance". These are: (1) transparency; (2) accountability; (3) participation. These are then usually broken down into sub-dimensions (such as rule of law, etc.pp.) and operationalized. There are of course many such efforts at operationalization, with the WB governance data set (KKZ) among the most prominent ones, but also with many methodological question marks.
For developing countries, I would use variables such as land tenure, land tenure security, government expenditure for agriculture, subsidies and taxes for agriculture and different agricultural products, land grabbing data , land appropriation and sales.
I suggest reading this first "the use and abuse of governance indicators" to get some idea what indicators measure which forms of governance, their strength and weaknesses etc. http://link.springer.com/article/10.1007/s10101-006-0025-9
I think that rule of law could be important for agricultural productivity. If you can be easily expropriated of your property, than you are not investing or buying expensive machines which can be easily taken or stolen. And in that way the productivity will be lower.
It is also important to clearly articulate what type of governance you are refering to. (1) Political governance (measured by voice & accountability and regulation quality) which is the election and replacement of political leaders. (2) Economic governance (measured by government effectiveness and regulation quality) which is the formulation and implementation of policies that deliver public goods. (3) Institutional governance (measured by corruption-control and rule of law) which measures the respect of the State and citizens of institutions that govern interactions between them.
See: Keefer, K., Knack, S., 1997, Why Don’t Poor Countries Catch Up? A Cross-National Test of an Institutional Explanation, Economic Inquiry vol. 35 no. 3, pp. 590-602
"Effectiveness of Governance" variable from World Bank Governance indicators data. Some researchers also use Corruption Perception Index (CPI) as a proxy for governance. On the Quality of Government Dataset (available for free), you might be able to select a variable that fits your research.
The above contributors have provided the full range of possibilities. I would simply add, to simplify your search, that if you can find one good indicator for each of the following seven areas then you will be able to you get what I think you are looking for: The seven areas are:
-macroeconomic environment
-microeconomic incentive system
-openness of economy
-administrative barriers to business
-Taxation system
-Legal environment for business
-government efficiency in service delivery
Good luck
I suggest you can add GOvernment Expenditure, Parastatal Performance, Debt levels & Distribution of income. Such variables indicate proper running of state resources.
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