Suchergebnisse

The literature stresses the relation between institutions and economic performance. The series of studies have demonstrated a strong link between institutional environment (measured through property right, rule of law, corruption, bureaucratic quality and other institutional variables) and economic growth and development. It is unclear whether the differences in institutional environment can also explain dispersion in per capita income in countries in which institutional environment is to some degree alike. Does it matter in respect of explaining variation in per capita income if country's institutional environment is "good" or "better" and "bad" or "worse"? While the contribution of institutions to economic development is often acknowledged, the channels by which institutions affect economy are underestimated. The theoretical arguments highlight the impact of institutions on physical and human capital accumulation, in­novation and thus on economic development. This article aims to test this presumption and to examine whether average means of investment, gross enrollment rate and technology creation index are higher in countries where institutional environment is good than in countries where institutional environment is bad. The aim of the article is to examine the differences in economic indicators between group of countries with better and group of countries with worse institutional environment and to identify their relationships with quality of institutional environment. The results show that on average economic variables are higher in good institutional environment countries than in bad ones. The findings reveal that extent to which the variation in GDP per capita can be associated with the quality of institutional environment differs a lot between good and bad institutional environment samples.