INSTITUTIONS AND ECONOMIC GROWTH

Tosheva, Elizabeta and Tilovska-Kechedji, Elena (2013) INSTITUTIONS AND ECONOMIC GROWTH. C, 16 . Scientific Research of the Union of Scientists in Bulgaria, Plovdiv, Bulgaria. ISBN 1311-9192

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Abstract

The purpose of this paper is to provide an analytical review of the recent literature on the relationships between institutions and economic growth. Institutions including both formal rules and the nature of interactions of economic, political and social spheres are crucial for understanding economic incentives and long-run economic growth. An emerging literature provides new empirical evidence for more precisely pinpoint how institutions operate and affect economic performances, as well as the conceptual framework for modeling their impact and dynamics. We limited the scope of this review to recent and macro-oriented studies of institutions and growth. In short, we can interpret the rediscovery of institutions and to a lesser extent the renewed interest, as a product of two trends. The first trend consists of an autonomous rediscovery of the importance of institutions in the economics that resulted in new theories of how institutions doing a significant and sizable effect on growth. The second trend is a renewed focus of international organizations, policy makers and development researchers on the role of the institutions and governance aimed at understanding and overcoming the heterogeneous outcomes of previous market-oriented reforms. In addition to the primary influences of the capital accumulation and skills embodied in the human capital, the results confirm the importance for growth of research and development activity, the macroeconomic environment, trade openness and well developed financial markets. Together with the policies and culture, institutions provide the incentives that guide the behavior of economic actors. Keywords: economic growth, institutions, laws, regulation, institutional framework

Item Type: Book
Subjects: Scientific Fields (Frascati) > Social Sciences > Economics and Business
Scientific Fields (Frascati) > Social Sciences > Political science
Scientific Fields (Frascati) > Social Sciences > Other social sciences
Divisions: Faculty of Law
Depositing User: Mr Mladen Kradzoski
Date Deposited: 26 Mar 2019 17:50
Last Modified: 26 Mar 2019 17:50
URI: http://eprints.uklo.edu.mk/id/eprint/1555

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