The purpose of this paper is to investigate the impact of institutional quality on economic\r\ngrowth. Indeed, in recent years economics literature and debates have increasingly referred\r\nto the link between governance and economic performances as the appropriate answers to\r\nthe longstanding questions concerning how economic growth arises. Given this main\r\nobjective of this study, we first discuss how political institutions contribute to determining\r\neconomic performance. Then, we present the empirical analysis which identifies the\r\ninteraction between political institutions and economic growth in developing countries. The\r\nmain finding of this paper is that improving the quality of political institutions is associated\r\nwith a decrease in the level of corruption and with a sustainable economic growth in\r\ndeveloping countries. Consequently, the institutional failures that characterize developing\r\ncountries lead inevitably to destabilize their long-term economic growth and a higher\r\ndegree of democratization would be a better improvement in their economic growth.
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