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Institutions and Economic Growth: A Cross country Evidence

Siddiqui, Danish Ahmed and Ahmed, Qazi Masood (2009): Institutions and Economic Growth: A Cross country Evidence.

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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

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