J 2020

DO INSTITUTIONS INFLUENCE ECONOMIC GROWTH?

ČERMÁKOVÁ, Klára, Pavel PROCHAZKA, Lucie KUREKOVÁ and Jiří ROTSCHEDL

Basic information

Original name

DO INSTITUTIONS INFLUENCE ECONOMIC GROWTH?

Authors

ČERMÁKOVÁ, Klára, Pavel PROCHAZKA, Lucie KUREKOVÁ and Jiří ROTSCHEDL

Edition

PRAGUE ECONOMIC PAPERS, 2020, 1210-0455

Other information

Type of outcome

Article in a journal

Confidentiality degree

is not subject to a state or trade secret

Impact factor

Impact factor: 0.481

DOI

http://dx.doi.org/10.18267/j.pep.749

UT WoS

000596002700003

Tags

International impact, Reviewed
Changed: 25/1/2025 17:53, Ing. Bc. Jiří Rotschedl, Ph.D.

Abstract

In English

Economic growth has been the subject of much focus throughout the history of economic thought as it has profound economic, social and political consequences. The sources of economic cycles am surrounded by intense and controversial scientific dispute. In our article. we want to contribute to the institutional economics debate by analysing selected institutional factors and testing their influence on economic growth. On a 2012-2018 dataset, we prove that soft factors such as property rights, freedom of corruption, level of freedom on different markets and other components of the Index of Economic Freedom and legal framework explain the differences in GDP per capita dynamics across countries. We present new evidence on how institutional factors determine economic growth. Unlike previously conducted studies, we use panel data and a set of general control variables in an attempt to respect causal inference. Moreover. we show that the mainstream economic conviction - more economic freedom leads to higher economic growth - fails in some cases. and regulation does not always hamper economic growth.
Displayed: 16/3/2025 08:54