Quality of institutions and economic growth: What joints? A theoretical and empirical analysis

Abstract

For a long time, economic theories have mainly attributed economic recovery to direct and purely economic factors such as investment, consumption, savings, exports, technology, etc. However, the failure of recovery policies in underdeveloped contexts calls this approach into question. Faced with this failure, deep reflection emerges as to the real scope and effectiveness of the direct factors in driving economic growth in these contexts. It is therefore imperative to analyze whether other factors, although less obvious but of equal importance, could influence the economic development of these countries. Over the past six decades, research and theoretical models have been overshadowed by the relationship between human capital and economic growth. Mincer (1958), Schultz (1961), and Becker (1962; 1964), but the study of the impact of institutional quality on economic growth is at an embryonic stage and is still at an unattainable horizon. For these reasons, the aim of this research work is to confront different points of view and conduct a theoretical and empirical exploration that will enable us to establish a conceptual framework relating to the relationship between the quality of institutions and economic growth.

Keywords:   Institutional Quality; Economic Growth; Human Capital; Education; Health.

JEL Classification: 043; 047; J24; I20; I10.

Paper type :  Theoretical Research