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Institutions and Economic Growth: A Cross country Evidence

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  • Siddiqui, Danish Ahmed
  • Ahmed, Qazi Masood

Abstract

The role of institutions in promoting economic growth and development has generated considerable interest among researchers and practitioners in recent years. This paper explores the role of state institutions in promoting growth using a GMM econometric model. Specifically it attempted to test impact of two dimensions of institutions on growth using recently developed index of institutionalized social technologies and its sub indices namely Risk reducing technologies and Anti rent seeking technologies. The result suggests a strong causal link between institutional quality and economic performance, and also confirms conditional convergence as predicted in the modern theories of growth

Suggested Citation

  • Siddiqui, Danish Ahmed & Ahmed, Qazi Masood, 2009. "Institutions and Economic Growth: A Cross country Evidence," MPRA Paper 19747, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:19747
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    Cited by:

    1. Engjell Pere, 2015. "Impact of good governance in the economic development of Western Balkan countries," European Journal of Government and Economics, Europa Grande, vol. 4(1), pages 25-45, June.
    2. Sumanjeet, 2015. "Institutions, Transparency, and Economic Growth," Emerging Economy Studies, International Management Institute, vol. 1(2), pages 188-210, November.
    3. Akindele Tolulope T., 2020. "Institutional Reform and Corruption on Economic Growth of Nigeria," Proceedings of the 18th International RAIS Conference, August 17-18, 2020 008att, Research Association for Interdisciplinary Studies.
    4. Tamilina, Larysa & Baklanova, Olena, 2012. "Способы формирования контрактных институтов как факторы экономического ростa: сравнительный анализ [Means of economic institutional formation as determinants of economic growth: a comparative analy," MPRA Paper 50171, University Library of Munich, Germany.
    5. Frances Stewart & Rachita Daga, 2017. "Does the way civil wars end affect the pattern of post-conflict development?," Oxford Development Studies, Taylor & Francis Journals, vol. 45(2), pages 145-170, April.
    6. Olena Baklanova & Mariana Petrova & Viktor Koval, 2020. "Institutional Transmission in Economic Development," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 68-91.
    7. Tamilina, Larysa & Baklanova, Olena, 2012. "Способы формирования контрактных институтов: эволюция versus революция [Means of institutional formation: evolution versus revolution]," MPRA Paper 50172, University Library of Munich, Germany.

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    More about this item

    Keywords

    institutions; social technologies; index; GMM; social capital; growth; rent seeking; rent seeking; risk; corruption; property rights;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • Z1 - Other Special Topics - - Cultural Economics
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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