differences in economic development among the countries of the world. According to the institutions-augmented Solow model, the … economic development. To answer this question, a new concept of the institutions-augmented Solow model is constructed. The … institutions-augmented Solow model fits the empirical data very well. It turns out that differences in physical capital, human …

institutions have been found to be decisive for the break out of stagnation and for explaining cross-country income differences by …

study has used paneldata for a large set of countries of the world. Panel-data framework has certain advantages over cross …-country regression. Coverage of our data-set for large number of countries of the world also adds to the authenticity of our analysis …

Does trade improve institutions and contribute to long run growth? I develop a theory of trade, in which trade … liberalization provides incentive to change institutions in two ways. On the one hand, trade leads to specialization according to … comparative advantage, expanding the industries that do not rely on contracting institutions in less developed countries. The …