THE ROLE OF INSTITUTIONS IN ECONOMIC GROWTH: A LITERATURE REVIEW

Abstract

There has been intense academic debate over what growth sources have been in recent years. At this point, the inadequacy of classical growth theories and the very different levels of development among societies caused economists to turn their eyes to the concept of institution. The issue of the role of institutions in economic growth has been explored with many academic studies, especially starting in the 1990s. In this study, the results of 61 different academic studies that analyze the impact of institutions on economic growth over a 23-year period (1995-2017) with different parameters and methods are analyzed in detail within the theoretical framework.