Impact of selected institutional factors on economic growth

TL;DRAbstract

This study examines the relationship between institutions and economic growth at various stages of economic development. The specific objectives of the study are (1) to investigate the impact of institutions on economic growth, (2) to examine the causality effect between institutions and economic growth. The dataset consists of 60 countries, which is further divided into four stages, namely low-income, lower-middle income, upper-middle income and high-income countries. The institutions dataset is obtained from International Country Risk Guide (ICRG) covering the period 1990 to 2006. The empirical results demonstrate that institutions have a significant impact on economic growth in the long-run in countries at various economic development levels except high-income countries. The results indicate that institutions (average) have positive significant impact on economic growth in lower-middle income and uppermiddle income countries. However, not all the dimensions of institutions have equa

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