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Institutions, Firms and Economic Growth

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Abstract

This paper reviews the literature on institutions and explores the ways in which institutions can influence economic growth, with a particular focus on how institutions affect the use that firms make of human capital to improve their productivity. It discusses the influence of underlying institutions, such as law and order and secure property rights, on the general environment within which the economic activities of production and exchange takes place. It also explores the influence of activity-specific institutions, such as labour market institutions, on firm decisions about resource use and innovation and through these on economic activity and economic growth.

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  • Jane Frances, 2004. "Institutions, Firms and Economic Growth," Treasury Working Paper Series 04/19, New Zealand Treasury.
    • Handle: RePEc:nzt:nztwps:04/19
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    File URL: https://treasury.govt.nz/sites/default/files/2007-09/twp04-19.pdf
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    References listed on IDEAS

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    21. Jeffrey D. Sachs, 2003. "Institutions Don't Rule: Direct Effects of Geography on Per Capita Income," NBER Working Papers 9490, National Bureau of Economic Research, Inc.
    22. Morris M. Kleiner & Hwikwon Ham, 2002. "Do Industrial Relations Institutions Impact Economic Outcomes?: International and U.S. State-Level Evidence," NBER Working Papers 8729, National Bureau of Economic Research, Inc.
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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 ersa11p1180, European Regional Science Association.
    2. Serkan Degirmenci, 2011. "Do Institutions Matter for Regional Economic Growth and Development? The Case of Turkey," ERSA conference papers ersa11p1374, European Regional Science Association.

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    More about this item

    Keywords

    institutions; human capital; regulation; norms; firms; economic growth; New Zealand;
    All these keywords.

    JEL classification:

    • D00 - Microeconomics - - General - - - General
    • D20 - Microeconomics - - Production and Organizations - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • K00 - Law and Economics - - General - - - General (including Data Sources and Description)
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • P00 - Political Economy and Comparative Economic Systems - - General - - - General
    • Z1 - Other Special Topics - - Cultural Economics

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