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Institutions and Development: A Critical Review

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Johannes P. Jütting

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Abstract

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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File URL: http://dx.doi.org/10.1787/341346131416
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Paper provided by OECD, Development Centre in its series OECD Development Centre Working Papers with number 210.

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

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  1. Arvanitidis, Paschalis & Petrakos, George & Pavleas, Sotiris, 2007. "Determinants of economic growth: the experts’ view," Papers DYNREG20, Economic and Social Research Institute (ESRI). [Downloadable!]
  2. Milo, Melanie S., 2007. "Integrated Financial Supervision: an Institutional Perspective for the Philippines," Discussion Papers DP 2007-17, Philippine Institute for Development Studies. [Downloadable!]
  3. Fathi Ali & Norbert Fiess & Ronald MacDonald, 2008. "Do Institutions Matter for Foreign Direct Investment?," Working Papers 2008_26, Department of Economics, University of Glasgow. [Downloadable!]
  4. Kiiza, Julius, 2006. "Institutions and Economic Performance in Africa: A Comparative Analysis of Mauritius, Botswana and Uganda," Working Papers RP2006/73, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
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