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Government Regulation and Policy trumps Courts in determining Economic Growth

Mamoon, Dawood (2017): Government Regulation and Policy trumps Courts in determining Economic Growth.

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Abstract

The paper evaluates the relative role of institutions and policy structure for a larger sample of developed and developing countries in determining economic growth. The paper finds that regulation and government effectiveness in formulating fiscal and monetary policy is closely related with economic growth more than the efficacy of rule of law. Unlike Rodrik et al (2004), social institutions that invest in human capabilities also matter equally if not more than independent judiciary. Globalization also works to the benefit of domestic polity and economy in income generation.

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