Institutions and Economic Growth: A Cross country Evidence

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

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

• Item Type: MPRA Paper
• Language: English
• Keywords: institutions; social technologies; index; GMM; social capital; growth; rent seeking; rent seeking; risk; corruption; property rights
• Subjects: E - Macroeconomics and Monetary Economics > E0 - General > E02 - Institutions and the Macroeconomy; Z - Other Special Topics > Z1 - Cultural Economics ; Economic Sociology ; Economic Anthropology; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O43 - Institutions and Growth; D - Microeconomics > D7 - Analysis of Collective Decision-Making > D72 - Political Processes: Rent-Seeking, Lobbying, Elections, Legislatures, and Voting Behavior; P - Economic Systems > P4 - Other Economic Systems > P48 - Political Economy ; Legal Institutions ; Property Rights ; Natural Resources ; Energy ; Environment ; Regional Studies; Z - Other Special Topics > Z1 - Cultural Economics ; Economic Sociology ; Economic Anthropology > Z13 - Economic Sociology ; Economic Anthropology ; Social and Economic Stratification

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