Hostname: page-component-cd9895bd7-gbm5v Total loading time: 0 Render date: 2024-12-24T03:31:44.932Z Has data issue: false hasContentIssue false

Linkages within institutional structure: an empirical analysis of water institutions

Published online by Cambridge University Press:  01 December 2008

R. MARIA SALETH
Affiliation:
International Water Management Institute, Colombo, Sri Lanka
ARIEL DINAR*
Affiliation:
The World Bank, Washington, DC, USA

Abstract

Taking water institutions as an illustrative context, this paper attempts a quantitative analysis of the structural and functional linkages within institutional structure and indicates their performance implications and strategic importance for promoting institutional reforms. Against an overview of existing empirical works on institutions in general and water institutions in particular, the paper develops an analytical framework for specifying alternative models of institution–performance interaction within the water sector under different assumptions concerning institutional linkages and their structural properties. These models are, then, empirically estimated using the perception-based information provided by an international panel of 127 water experts from 43 countries and regions around the world. Based on the model results, the paper offers quantitative evidences for institutional linkages and their performance implications, and concludes by indicating their policy roles, especially in developing some reform design and implementation principles useful to overcome the technical and political economy constraints for institutional reforms.

Type
Research Article
Copyright
Copyright © The JOIE Foundation 2008

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Adelman, I. and Lohmoller, J.-B. (1994), ‘Institutions and Development in the Nineteenth Century: A Latent Variable Regression Model’, Structural Change and Economic Dynamics, 5 (2): 329359.CrossRefGoogle Scholar
Boyer, R. and Hollingsworth, J. R. (1997), ‘From National Embeddedness to Spatial and Institutional Nestedness’, in Hollingsworth, J. R. and Boyer, R. (eds), Contemporary Capitalism: The Embeddedness of Institutions, Cambridge: Cambridge University Press, pp. 433477.CrossRefGoogle Scholar
Bromley, D. W. (1985), ‘Resources and Economic Development’, Journal of Economic Issues, 19 (September): 779796.CrossRefGoogle Scholar
Bromley, D. W. (1989), Economic Interests and Institutions: The Conceptual Foundations of Public Policy, New York: Basil Blackwell.Google Scholar
Clague, C. (ed.) (1997), Institutions and Economic Development: Growth and Governance in Less-Developed and Post-Socialist Countries, Baltimore and London: The Johns Hopkins University Press.CrossRefGoogle Scholar
Commons, J. R. (1934), Institutional Economics, New York: Macmillan.Google Scholar
Coriat, B. and Dosi, G. (1998), ‘The Institutional Embeddedness of Economic Change: An Appraisal of the Evolutionary and Regulationist Research Programmes’, in Nielsen, K. and Johnson, B. (eds), Institutions and Economic Change, Cheltenham: Edward Elgar, pp. 332.Google Scholar
Cukierman, A., Webb, S. B., and Neyapti, B. (1998), ‘Measuring the Independence of Central Banks and its Effects on Policy Outcomes’, The World Bank Economic Review, 6 (3): 353398.CrossRefGoogle Scholar
Dinar, A. (ed.) (2000), The Political Economy of Water Pricing Reforms, New York: Oxford University Press.Google Scholar
Douglas, M. (1987), How Institutions Think?, London: Routledge & Kegan Paul.Google Scholar
Gray, C. W. and Kaufmann, D. (1998), ‘Corruption and Development’, Finance and Development, 35 (1): 710.Google Scholar
Hearne, R. and Easter, K. W. (1997), ‘The Economic and Financial Gains from Water Markets in Chile’, Agricultural Economics, 15: 187199.CrossRefGoogle Scholar
Isham, J. and Kahkonen, S. (1999), ‘Institutional Determinants of the Impact of Community-based Water Services: Evidence from Sri Lanka and India’, IRIS Working paper, University of Maryland, College Park, MD, USA.Google Scholar
Kahneman, D. and Tversky, A. (1984), ‘Choices, Values, and Frames’, American Psychologist, 39 (4): 341350.CrossRefGoogle Scholar
Knack, S. and Keefer, P. (1986), ‘Institutions and Economic Performance: Cross-Country Tests Using Alternative Institutional Measures’, Economics and Politics, 7 (3): 207227.CrossRefGoogle Scholar
La Porta, R., Lopez-de-Salinas, F., , A. Shleifer, and Vishny, R. (1999), ‘The Quality of Government’, Journal of Law, Economics, and Organization, 15 (1): 222279.CrossRefGoogle Scholar
Li, Q. (1999), ‘Institutional Design and the Performance of Trade Blocs’, Paper presented at the International Studies Association Annual Meeting, Washington, DC, February.Google Scholar
North, D. C. (1990), Institutions, Institutional Change, and Economic Performance, Cambridge: Cambridge University Press.CrossRefGoogle Scholar
North, D. C. (1997), ‘The Contribution of the New Institutional Economics to an Understanding of the Transition Problem’, WIDER Annual Lectures 1, World Institute for Development Economics Research, Helsinki, Finland.CrossRefGoogle Scholar
Ostrom, E. (1990), Governing the Commons: The Evolution of Institutions for Collective Action, Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Ostrom, E., Parks, R. B., and Whitaker, G. P. (1978), Patterns of Metropolitan Policing, Cambridge, MA: Ballinger.Google Scholar
Ostrom, V. (1980), ‘Artisanship and Artefact’, Public Administration Review, 40 (July–Aug): 309317.CrossRefGoogle Scholar
Posner, R. A. (1997), ‘Equality, Wealth, and Political Stability’, Journal of Law, Economics, and Organization, 13 (2): 344365.CrossRefGoogle Scholar
Remmer, K. L. (1998), ‘Does Democracy Promote Inter-state Cooperation? Lessons from the Mercosur Region’, International Study Quarterly, 42 (1): 2552.CrossRefGoogle Scholar
Rosegrant, M. W. and Binswanger, H. (1994), ‘Markets in Tradable Water Rights: Potential for Efficiency Gains in Developing Country Water Resource Allocation’, World Development, 22 (1): 16131625.CrossRefGoogle Scholar
Saleth, R. M., Braden, J. B., and Eheart, J. W. (1991), ‘Bargaining Rules for a Thin Spot Water Market’, Land Economics, 67 (3): 326339.CrossRefGoogle Scholar
Saleth, R. M., and Dinar, A. (1999), ‘Evaluating Water Institutions and Water Sector Performance’, Technical Paper No. 447, World Bank, Washington, DC.CrossRefGoogle Scholar
Saleth, R. M. and Dinar, A. (2004), The Institutional Economics of Water: A Cross-Country Analysis of Institutions and Performance, Cheltenham: Edward Elgar. (http://www-wds.worldbank.org/external/default/main?pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&theSitePK=523679&entityID=000160016_20040819103146&searchMenuPK=64187283&theSitPK=523679)Google Scholar
Saleth, R. M. and Dinar, A. (2006), ‘Water Institutional Reforms in Developing Countries: Insights, Evidences, and Case Studies’, in Lopez, R. and Toman, M. (eds), Economic Development and Environmental Sustainability: New Policy Options, New York: Oxford University Press, pp. 273303.Google Scholar
Saleth, R. M., Dinar, A., Neubert, S., Kamaiah, B., Manoharan, S., Abayawardana, S., Ariyaratne, R., and de Silva, S. (2007), ‘Institutions, Impact Synergies, and Food Security: A Methodology with Results from Kala Oya Basin, Sri Lanka’, Research Report No. 124, International Water Management Institute, Colombo, Sri Lanka. (http://www.iwmi.cgiar.org/Publications/IWMI_Research_Reports/PDF/PUB124/RR124.pdf)Google Scholar
Stein, J. (1997), ‘How Institutions Learn? A Socio-Cognitive Perspective’, Journal of Economic Issues, 31 (3): 729739.CrossRefGoogle Scholar
Tool, M. R. (1977), ‘A Social Value Theory in Neo-institutional Economics’, Journal of Economic Issues, 11 (December): 823849.CrossRefGoogle Scholar
Tsur, Y., Roe, T., Doukkali, R., and Dinar, A. (2004), Pricing Irrigation Water: Principles and Cases from Developing Countries, Washington, DC: Resources for the Future Press.Google Scholar
Veblen, T. B. (1919), The Place of Science in Modern Civilization and other Essays, New York: Huebsch.Google Scholar
White, L. G. (1990), Implementing Policy Reforms in LDCs: A Strategy for Designing and Effecting Change, Boulder, CO and London: Lynne Rienner Publishers.Google Scholar
Williamson, O. E. (1994), ‘Institutions and Economic Organization: The Governance Perspective’, Paper presented at the Annual Bank Conference on Development Economics (ABCDE), World Bank, Washington, DC.Google Scholar