Role Of Institutions In Growth Of Countries

Abstract

The purpose of this paper was to look at the role of institutions in growth of countries. We compared income and quality of institutions data among 87 developing countries to see if institutions that promote economic freedom and investment lead to higher economic growth. In addition, we wanted to look at the role of institutions in economic growth at the local level in a country. For this analysis, we compared income and quality of institutions data for different states in India. In both cases, we found that growth is significantly affected by the quality of institutions.