The present study examines how policy makers should consider the quality of institutional framework to reduce the productivity gap and increase a country's ability to absorb superior technologies developed elsewhere. This paper analyzes the impact of components of economic freedom, such as the...

This paper studies whether institutions matter for economic performance. For this aim, we first construct a simple framework illustrating how to examine the interaction between institutions and economic performance from a different point of view. Then, using this framework, we introduce an...