Institutions, Growth and Convergence : An Empirical Survey Based on Pakistani and Global Prespective

This study reviewed the literature on sustainable economic growth and institutions in the context of developed and less developed countries specifically Pakistan. It also surveyed the studies conducted to empirically asses the validity of neo classical convergence. This review have clearly indicated that quality of institutions has become the most discussed factor influencing economic growth. Furthermore, the lack of convergence is also attributed to weak institutions. There is also sufficient empirical studies focusing on different types of institutions and their relative impact to economic variables. However, the role of institutions seems to be different when they are analyzed in a Pakistani prospective. It was witnessed that countries like Pakistan have done well economically despite their weak institutions. Hence, it is suggested that there is a need of country specific studies so that their unique dynamics are better captured