Growth empirics with institutional measures is performed for 25 transition countries overthe period 1990-95. Estimation results suggest that (particularly state) institutions aresignificant for growth and, especially, foreign direct investment (FDI), the latter in turnbeing important for the...

We explain economic growth by both politics, i.e. government activity including spending as well as regulation, and institutional quality and its interaction with politics. This extends previous work on institution building in transition by looking at its impact and, at the same time,...

In the wake of the global financial crisis that began in 1997, an influential body of opinionarose which argued that a primary cause of the crisis in the affected countries was a lack ofinstitutional transparency and accountability, and more generally, an absence of the rule of law. Thisargument...