A Brief Study on Institutions, Investment and Economic Growth

Abstract

A renewed interest in the role of institutions in achieving economic growth was noted from the 1990s. Indeed, a healthy institutional environment is capable of stimulating domestic and international investment and thus helping to achieve economic growth. Exactly, within this framework that fits the objective of this chapter which aims to survey the empirical literature on the matter to then proceed to two econometric investigations in order to test the effects of institutions on the economic growth of a group of countries. The results of these various investigations stipulate a positive effect, direct and indirect, of institutional factors on investment and economic growth. Thus, the work carried out within the framework of this chapter confirms the basic idea, according to which a healthy institutional framework can only play a crucial role in the achievement of good economic performances and essentially economic growth.