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Institutions and Development: A Critical Review


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  • Johannes P. Jütting


In recent years, the role of institutions for development has received considerable attention from development researchers, policy makers and practitioners. This paper reviews the evidence on the impact of institutions on growth and other development outcomes. Most of the reviewed studies find a strong positive correlation between the quality and performance of institutions on the one hand and development outcomes on the other. However, due to various methodological approaches and conceptual problems, the evidence on causation is still thin. To address some of the identified weaknesses, the paper proposes an innovative analytical framework that maps out channels of influence between institutions and development outcomes. The developed framework stresses the idea that institutions do not stand alone but are embedded in a local setting influenced by historical trajectories and culture. Studies analysing the impact of institutions on development outcomes need to take into account the ... Depuis quelques années, le rôle des institutions dans le développement a été abondamment étudié par les chercheurs, les décideurs et les praticiens du développement. Ce Document technique fait le point des théories concernant l’impact des institutions sur la croissance économique et sur d’autres aspects du développement. La plupart des travaux font état d’une forte corrélation positive entre la qualité et les performances des institutions d’une part, et les résultats en matière de développement d’autre part. Toutefois, du fait de la diversité des méthodologies appliquées et des problèmes d’ordre conceptuel, le lien de causalité n’est pas clairement établi. Certaines lacunes ont été identifiées. Pour y répondre, ce Document propose un cadre analytique qui cartographie quelles sont les voies d’influence des institutions sur le processus de développement. Le cadre d’analyse souligne que les institutions ne sont pas seules en cause mais qu’elles s’insèrent dans une configuration locale ...

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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Development Centre Working Papers with number 210.

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Date of creation: Jul 2003
Date of revision:
Handle: RePEc:oec:devaaa:210-en

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Cited by:
  1. Axel Borrmann & Matthias Busse & Silke Neuhaus, 2006. "Institutional Quality and the Gains from Trade," Kyklos, Wiley Blackwell, vol. 59(3), pages 345-368, 08.
  2. Fathi Ali & Norbert Fiess & Ronald MacDonald, 2008. "Do Institutions Matter for Foreign Direct Investment?," Working Papers 2008_26, Business School - Economics, University of Glasgow.
  3. Cingolani, Luciana & Crombrugghe, Denis de, 2012. "Techniques for dealing with reverse causality between institutions and economic performance," MERIT Working Papers 034, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  4. Morrisson, Christian & Jutting, Johannes P., 2005. "Women's discrimination in developing countries: A new data set for better policies," World Development, Elsevier, vol. 33(7), pages 1065-1081, July.
  5. Borrmann, Axel & Busse, Matthias, 2006. "The institutional challenge of the ACP/EU Economic Partnership Agreements," HWWI Research Papers 2-3, Hamburg Institute of International Economics (HWWI).
  6. Layug, Allan S., 2009. "Triangulation Framework for Local Service Delivery," Discussion Papers DP 2009-37, Philippine Institute for Development Studies.
  7. Savoia, Antonio & Easaw, Joshy & McKay, Andrew, 2010. "Inequality, Democracy, and Institutions: A Critical Review of Recent Research," World Development, Elsevier, vol. 38(2), pages 142-154, February.
  8. Kiiza, Julius, 2006. "Institutions and Economic Performance in Africa: A Comparative Analysis of Mauritius, Botswana and Uganda," Working Paper Series RP2006/73, World Institute for Development Economic Research (UNU-WIDER).
  9. Okojie, Christiana & Monye-Emina, A. & Eghafona, K. & Osaghae, G. & Ehiakhamen, J.O., 2009. "Institutional environment and access to microfinance by self-employed women in the rural areas of Edo state, Nigeria:," NSSP working papers 3, International Food Policy Research Institute (IFPRI).
  10. Milo, Melanie S., 2007. "Integrated Financial Supervision: an Institutional Perspective for the Philippines," Discussion Papers DP 2007-17, Philippine Institute for Development Studies.
  11. Nick Hoffmann & Anja Rohwer, 2010. "DICE – eine Datenbank von institutionellen Regelungen im internationalen Vergleich," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 63(04), pages 31-39, 02.


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