A MODEL OF GROWTH AUGMENTED WITH INSTITUTIONS

"This paper shows that the inclusion of institutional indicators in a traditional model of growth substantially improves its explanatory capacity. The results have implications for economic policy, because not all the dimensions of institutional quality influence growth to the same extent. A large sample of 165 countries and estimation methods with instrumental variables are used to solve endogeneity problems." Copyright (c) 2007 The Authors. Journal compilation (c) Institute of Economic Affairs 2007.