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A Review of the Recent Literature on the Institutional Economics Analysis of the Long-Run Performance of Nations

Author

Listed:
  • Peter Lloyd

    () (University of Melbourne)

  • Cassey Lee

    (ISEAS – Yusof Ishak Institute, Singapore)

Abstract

This paper reviews the recent (post-2000) literature which assesses the importance of institutions as a factor determining cross-country differences in growth rates or in the contemporary level of “prosperity”. It first sketches how institutional economics has evolved. It then examines critically the methods of analysis employed in the recent literature. The paper finds that this literature has made a major contribution to the analysis of the causes of economic growth but the relative importance of institutions as a determinant of long-run growth and prosperity is still a wide open question.

Suggested Citation

  • Peter Lloyd & Cassey Lee, 2016. "A Review of the Recent Literature on the Institutional Economics Analysis of the Long-Run Performance of Nations," Department of Economics - Working Papers Series 2019, The University of Melbourne.
  • Handle: RePEc:mlb:wpaper:2019
    as

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    File URL: http://fbe.unimelb.edu.au/__data/assets/pdf_file/0007/1889503/2019PeterLloydEcoAnalysisOfTheLongRun.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    institutions; policies; long-run performance; instruments;

    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary

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