This essential research review carefully analyses some of the most
influential papers focusing on the relationship between economic
and political institutions and economic development. Economic
institutions shape economic incentives, such the incentives to
become educated, to save and invest, to innovate and to adopt new
technologies. Although economic institutions are critical for
determining whether a country is poor or prosperous, it is politics
and political institutions that determine which economic
institutions are present in a country. This review explores these
critical relationships and the causes of economic growth, whilst
bringing forth the legal, colonial and financial factors, which
contribute to economic discrepancies across countries. The text
will be a valuable tool for economic researchers and scholars
interested in this important subject.
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