Institutions, Policies, and Economic Growth: Overview

Alali, Walid Y. (2010): Institutions, Policies, and Economic Growth: Overview.

Abstract

Economic growth is perhaps one of the most important subjects in the field of economic development. This paper overview the links between institutions, economic growth, and policy settings in developing countries based on cross-country (Asia, Latin America, and Africa), for the last two decades. It has also been shown that many policy effects act not only 'directly' on growth but also indirectly through the mobilization of resources for fixed investment. Sustained high growth rates are usually regarded as the main driver of improving the general welfare and income of a country. Neoclassical growth models, like Solow (1956), have put great emphasis on the role of physical capital accumulation. Modern economic growth theories have been extended to consider innovations, technology, human capital as well as institutions the fundamental causes of growth.

• Item Type: MPRA Paper
• Language: English
• Keywords: Economic Development, Institutions, Institutions Performance, Policy, Economic Growth,
• Subjects: D - Microeconomics > D0 - General; E - Macroeconomics and Monetary Economics > E0 - General > E02 - Institutions and the Macroeconomy; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E61 - Policy Objectives ; Policy Designs and Consistency ; Policy Coordination; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence

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