Neoclassical and endogenous growth models yield strikingly different predictions regarding the determinants of long-run growth rates and their implications for long-run cross-country convergence characteristics. On the one hand, Mankiw, Romer, and Weil (1992) and Barro and Salai-Martin (1995)...

The determinants of economic growth and development are hotly debated among economists. Financial crises and failed transition experiments have highlighted the fact that functioning institutions are fundamental to the goal of achieving economic growth. The growth literature has seen an abundance...