Publication:
Natural Openness and Good Government

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dc.contributor.authorWei, Shang-Jin
dc.date.accessioned2014-08-27T21:06:50Z
dc.date.available2014-08-27T21:06:50Z
dc.date.issued2000-08
dc.description.abstractThe author offers a possibly new interpretation of the connection between openness and good governance, with a conceptual model and some empirical evidence. Assuming that corruption and bad governance reduce international trade and investment more than domestic trade and investment, a "naturally more open economy"-as determined by its size and geography-would devote more resources to building good institutions and would display less corruption in equilibrium. How is "natural openness" defined? By size, geography, and language. France would be more naturally open than Argentina because Argentina is more remote. Ability to speak English facilitates international trade. A country with a long coast tends to be more open than a landlocked country. In the data, "naturally more open economies" do show less corruption even after their level of development is taken into account. "Residual openness"-which could include trade policies-is not important once "natural openness" is accounted for. Moreover, "naturally more open economies" also tend to pay civil servants salaries that are more competitive with those of their private sector counterparts. One implication of this research is that globalization may affect governance: as globalization deepens, the "natural openness" of all countries increases. This raises the opportunity cost of tolerating a given level of corruption and could provide new impetus for countries to fight corruption. These patterns are consistent with the conceptual model.en
dc.identifierhttp://documents.worldbank.org/curated/en/2000/08/443565/natural-openness-good-government
dc.identifier.doi10.1596/1813-9450-2411
dc.identifier.urihttps://hdl.handle.net/10986/19796
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 2411
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectAVERAGE INCOME
dc.subjectBAD GOVERNANCE
dc.subjectBENCHMARK
dc.subjectBILATERAL TRADE
dc.subjectBRIBERY
dc.subjectBUREAUCRACY
dc.subjectBUREAUCRAT
dc.subjectBUREAUCRATIC CORRUPTION
dc.subjectBUREAUCRATIC STRUCTURE
dc.subjectCIVIL RIGHTS
dc.subjectCIVIL SERVANTS
dc.subjectCIVIL SERVICE
dc.subjectCOMPETITIVENESS
dc.subjectCONSUMPTION EXPENDITURES
dc.subjectCONTRACT ENFORCEMENT
dc.subjectCONVENTIONAL WISDOM
dc.subjectCORRUPTION
dc.subjectDEMOCRACY
dc.subjectDEMOCRATIC INSTITUTIONS
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDIRECT INVESTMENT
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC PERFORMANCE
dc.subjectECONOMIC RISK
dc.subjectECONOMICS LITERATURE
dc.subjectEFFECT OF TRADE
dc.subjectELASTICITY
dc.subjectEMPIRICAL EVIDENCE
dc.subjectEQUILIBRIUM
dc.subjectEXPECTED UTILITY
dc.subjectEXPENDITURE
dc.subjectEXPORTS
dc.subjectFEDERAL STATES
dc.subjectFEDERALISM
dc.subjectFIGHTING CORRUPTION
dc.subjectFISCAL
dc.subjectFISCAL DECENTRALIZATION
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN INVESTORS
dc.subjectFOREIGN TRADE
dc.subjectGDP
dc.subjectGDP PER CAPITA
dc.subjectGINI COEFFICIENT
dc.subjectGOOD GOVERNANCE
dc.subjectGOOD GOVERNMENT
dc.subjectGOVERNMENT OFFICIALS
dc.subjectGOVERNMENT PERFORMANCE
dc.subjectGOVERNMENT POLICIES
dc.subjectGOVERNMENT REVENUES
dc.subjectGROWTH RATE
dc.subjectIMPORTS
dc.subjectINCOME DISTRIBUTION
dc.subjectINCOME EFFECT
dc.subjectINCOME INEQUALITY
dc.subjectINCOME LEVEL
dc.subjectINEQUALITY
dc.subjectINSTITUTION BUILDING
dc.subjectINTERNATIONAL LABOR
dc.subjectINTERNATIONAL TRADE
dc.subjectLESS DEVELOPED COUNTRIES
dc.subjectLOCAL GOVERNMENT
dc.subjectLOCAL GOVERNMENTS
dc.subjectLORENZ CURVE
dc.subjectMARGINAL BENEFITS
dc.subjectMARGINAL COST
dc.subjectNATIONS
dc.subjectOPEN ECONOMIES
dc.subjectOPENNESS
dc.subjectOPPORTUNITY COST
dc.subjectOPTIMIZATION
dc.subjectPER CAPITA INCOME
dc.subjectPOLITICAL ECONOMY
dc.subjectPOLITICAL RIGHTS
dc.subjectPOLITICAL RISK
dc.subjectPUBLIC GOVERNANCE
dc.subjectPUBLIC INSTITUTION
dc.subjectPUBLIC INSTITUTIONS
dc.subjectPUBLIC POLICY
dc.subjectPUBLIC SECTOR
dc.subjectREVERSE CAUSALITY
dc.subjectSOCIAL WELFARE
dc.subjectTAX RATE
dc.subjectTRADE BARRIERS
dc.subjectTRADE POLICIES
dc.subjectTRADING BLOCS
dc.subjectTRANSPARENCY
dc.subjectUTILITY FUNCTION
dc.subjectVOTING
dc.subjectWAGES
dc.titleNatural Openness and Good Governmenten
dspace.entity.typePublication
okr.crossref.titleNatural Openness and Good Government
okr.date.disclosure2000-08-31
okr.date.doiregistration2025-04-10T07:19:45.299257Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2000/08/443565/natural-openness-good-government
okr.globalpracticePoverty
okr.globalpracticeGovernance
okr.guid388241468741306844
okr.identifier.doi10.1596/1813-9450-2411
okr.identifier.externaldocumentum000094946_00082205414670
okr.identifier.internaldocumentum443565
okr.identifier.reportWPS2411
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2000/09/01/000094946_00082205414670/Rendered/PDF/multi_page.pdfen
okr.sectorPublic Sector Management Adjustment
okr.sectorPublic Administration, Law, and Justice
okr.topicEconomic Theory and Research
okr.topicLaw and Development::Legal Products
okr.topicPublic Sector Development::Decentralization
okr.topicEnvironmental Economics and Policies
okr.topicPoverty Monitoring and Analysis
okr.topicGovernance::National Governance
okr.topicGovernance::Governance Indicators
okr.topicPoverty Reduction
okr.unitPublic Economics, Development Research Group
okr.volume1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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