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Institutions and Economic Growth: Empirical Evidence for a Cross-National Analysis

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  • Vijayaraghavan, Maya
  • Ward, William A.

Abstract

The relationship between institutional infrastructure and economic growth rates across 43 nations between the years 1975-90 is examined. Within the framework of the neoclassical growth model, this study integrates a broad set of institutional variables which together proxy for the overall institutional infrastructure of an economy. Security of property rights, governance, political freedom and size of government are the indicators used in the study, facilitating identification of the most important institutions that account for the observed variations in economic growth rates among nations. Results indicate that security of property rights and size of government are the most significant institutions that explain the variations in economic growth rates.

Suggested Citation

  • Vijayaraghavan, Maya & Ward, William A., 2001. "Institutions and Economic Growth: Empirical Evidence for a Cross-National Analysis," Working Papers 112952, Clemson University, Center for International Trade.
    • Handle: RePEc:ags:cuciwp:112952
    DOI: 10.22004/ag.econ.112952
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    Cited by:

    1. Serkan Degirmenci, 2011. "Do Institutions Matter for Regional Economic Growth and Development? The Case of Turkey," ERSA conference papers ersa11p1374, European Regional Science Association.
    2. repec:hal:spmain:info:hdl:2441/f0uohitsgqh8dhk980eal4i12 is not listed on IDEAS
    3. Dawid Piątek & Katarzyna Sarzec, 2009. "Państwo a dobrobyt ekonomiczny - między wolnością a przymusem," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 5-6, pages 1-19.
    4. Berggren, Niclas, 2003. "The Benefits of Economic Freedom: A Survey," Ratio Working Papers 4, The Ratio Institute.
    5. Serkan Degirmenci, 2011. "Do Institutions Matter for Regional Economic Growth and Development? The Case of Turkey," ERSA conference papers ersa11p1180, European Regional Science Association.
    6. Selahmi, Basma & Liu, Chunping, 2022. "Institutions and the Resource Curse in GCC countries," MPRA Paper 114924, University Library of Munich, Germany, revised 26 Aug 2022.
    7. Antonella Rita Ferrara & Rosanna Nisticò, 2019. "Does Institutional Quality Matter for Multidimensional Well-Being Inequalities? Insights from Italy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(3), pages 1063-1105, October.
    8. Wizarat, Shahida, 2013. "Are resource abundant countries afflicted by the resource curse?," International Journal of Development and Conflict, Gokhale Institute of Politics and Economics, vol. 3(2), pages 24-39.
    9. Nathan Perry & Carlos Schönerwald, 2009. "Institutions, Geography, and Terms of Trade in Latin America: A Longitudinal Econometric Analysis," Working Paper Series, Department of Economics, University of Utah 2009_04, University of Utah, Department of Economics.
    10. Prof. Dr Shahida Wizarat, 2014. "Natural Resources, Conflict and Growth: Uncovering the Transmission Mechanism," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(8), pages 987-1000, August.
    11. Thomas Farole & Andres Rodriguez-Pose & Michael Storper, 2007. "Social capital, rules, and institutions: A cross-country investigation," Sciences Po publications 2007-12, Sciences Po.
    12. Marion Payen & Patrick Rondé, 2020. "Culture, Institutions and Economic Growth," Working Papers of BETA 2020-18, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    13. Feyza Eldeniz, 2011. "An Assessment Of Institutional Restructuring In Regional Policy," ERSA conference papers ersa11p70, European Regional Science Association.
    14. Md. Golam Kibria & M. M. K. Toufique, 2023. "Institutional governance and quality of life: evidence from developing countries," SN Business & Economics, Springer, vol. 3(3), pages 1-20, March.
    15. Aralica Zoran & Svilokos Tonci & Bacic Katarina, 2018. "Institutions and Firms’ Performance in Transition Countries: The Case of Selected Cesee Countries," South East European Journal of Economics and Business, Sciendo, vol. 13(1), pages 68-80, June.
    16. Shahida Wizarat, 2013. "Natural Resources, Conflict and Growth Nexus," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 3(8), pages 1063-1082, August.
    17. Alena V. Fomina & Oksana N. Berduygina & Alexander A. Shatsky, 2018. "Industrial cooperation and its influence on sustainable economic growth," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 5(3), pages 467-479, March.
    18. Puruweti Siyakiya, 2017. "The Impact of Institutional Quality on Economic Performance: An Empirical Study of European Union 28 and Prospective Member Countries," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 3(2), pages 3-24, December.
    19. Zwane, Talent & Biyase, Mduduzi & Binda, Thandolwethu, 2021. "Institutions and Technical Efficiency: A Stochastic Frontier Approach," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 74(4), pages 415-438.
    20. Efendic, Adnan & Pugh, Geoff & Adnett, Nick, 2011. "Institutions and economic performance: A meta-regression analysis," European Journal of Political Economy, Elsevier, vol. 27(3), pages 586-599, September.
    21. Alena V. Fomina & Oksana N. Berduygina & Alexander A. Shatsky, 2018. "Industrial cooperation and its influence on sustainable economic growth," Post-Print hal-01773578, HAL.
    22. Ozer, Yusuf, 2022. "Informal Sector and Institutions," MPRA Paper 114755, University Library of Munich, Germany.
    23. Iheonu, Chimere & Ihedimma, Godfrey & Onwuanaku, Chigozie, 2017. "Institutional Quality and Economic Performance in West Africa," MPRA Paper 82212, University Library of Munich, Germany.

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