A recently much debated issue is why observed investment and growth rates inpoor countries are lower than traditional … theory predicts. Empirical evidencesuggests that social and political instability is a major reason for thedivergence between … investment rates is notmonotonic but follows a hump-shaped pattern. The empirical evidence shows thatalthough very poor economies …

Institutions are strikingly absent from most economic theory, certainly from growth theory.In standard theory it is … environment.Until recently, empirical studies measuring just how important institutions are for growthand investment have been ….In this paper the most important empirical studies on the relationship betweeninstitutions and growth and investment, and the …

structural differences between the country groups mainly stem from different effects of investment, openness measures and …