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Institutions and Development: A Critical Review


  • Johannes P. Jütting


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 ...

Suggested Citation

  • Johannes P. Jütting, 2003. "Institutions and Development: A Critical Review," OECD Development Centre Working Papers 210, OECD Publishing.
  • Handle: RePEc:oec:devaaa:210-en

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    References listed on IDEAS

    1. Paul Cashin & C. John McCDermott, 2002. "The Long-Run Behavior of Commodity Prices: Small Trends and Big Variability," IMF Staff Papers, Palgrave Macmillan, vol. 49(2), pages 1-2.
    2. Blomström, Magnus & Kokko, Ari, 2002. "From Natural Resources to High-Tech Production: The Evolution of Industrial Competitiveness in Sweden and Finland," EIJS Working Paper Series 139, Stockholm School of Economics, The European Institute of Japanese Studies.
    3. Agosin, M., 1997. "Export Performance in Chile: Lessons for Africa," Research Paper 144, World Institute for Development Economics Research.
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    Cited by:

    1. Borrmann, Axel & Busse, Matthias, 2006. "The institutional challenge of the ACP/EU Economic Partnership Agreements," HWWI Research Papers 2-3, Hamburg Institute of International Economics (HWWI).
    2. Prabir De, 2010. "Governance, Institutions, and Regional Infrastructure in Asia," Working Papers id:3029, eSocialSciences.
    3. Okojie, Christiana & Monye-Emina, A. & Eghafona, K. & Osaghae, G. & Ehiakhamen, J.O., 2009. "Institutional environment and access to microfinance by self-employed women in the rural areas of Edo state, Nigeria:," NSSP working papers 3, International Food Policy Research Institute (IFPRI).
    4. Savoia, Antonio & Easaw, Joshy & McKay, Andrew, 2010. "Inequality, Democracy, and Institutions: A Critical Review of Recent Research," World Development, Elsevier, vol. 38(2), pages 142-154, February.
    5. Harun Bal & Nese Algan & P?nar Ozdemir, 2015. "Role of Political Intitutions on Social Conflicts and Economic Accumulation: A Case Study of Turkey," Proceedings of International Academic Conferences 2804538, International Institute of Social and Economic Sciences.
    6. Cingolani, Luciana & Crombrugghe, Denis de, 2012. "Techniques for dealing with reverse causality between institutions and economic performance," MERIT Working Papers 034, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    7. Nick Hoffmann & Anja Hülsewig, 2010. "DICE - eine Datenbank von institutionellen Regelungen im internationalen Vergleich," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 63(04), pages 31-39, February.
    8. Milo, Melanie S., 2007. "Integrated Financial Supervision: an Institutional Perspective for the Philippines," Discussion Papers DP 2007-17, Philippine Institute for Development Studies.
    9. Fathi Ali & Norbert Fiess & Ronald MacDonald, 2010. "Do Institutions Matter for Foreign Direct Investment?," Open Economies Review, Springer, vol. 21(2), pages 201-219, April.
    10. Layug, Allan S., 2009. "Triangulation Framework for Local Service Delivery," Discussion Papers DP 2009-37, Philippine Institute for Development Studies.
    11. Axel Borrmann & Matthias Busse & Silke Neuhaus, 2006. "Institutional Quality and the Gains from Trade," Kyklos, Wiley Blackwell, vol. 59(3), pages 345-368, August.
    12. Kiiza, Julius, 2006. "Institutions and Economic Performance in Africa: A Comparative Analysis of Mauritius, Botswana and Uganda," WIDER Working Paper Series 073, World Institute for Development Economic Research (UNU-WIDER).
    13. Michael Regan, 2017. "Capital Markets, Infrastructure Investment and Growth in the Asia Pacific Region," International Journal of Financial Studies, MDPI, Open Access Journal, vol. 5(1), pages 1-28, February.
    14. Morrisson, Christian & Jutting, Johannes P., 2005. "Women's discrimination in developing countries: A new data set for better policies," World Development, Elsevier, vol. 33(7), pages 1065-1081, July.

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