Institutions and Economic Growth: Empirical Evidence fron1 a Cross-National Analysis

The relationship between institutional infrastructure and economic growth rates across 43 nations between the years 1975-90 is examined. Within the framework of the neoclassical growth model, this study integrates a broad set of institutional variables which together proxy for the overall institutional infrastructure of an economy. Security of property rights, governance, political freedom and size of government are the indicators used in the study, facilitating identification of the most important institutions that account for the observed variations in economic growth rates among nations. Results indicate that security of property rights and size of government are the most significant institutions that explain the variations in economic growth rates. * Department of Agricultural and Applied Economics, 247 Barre Hall, Clemson SC 29634-0355. Email: [email protected]. Tel: 864.656.7822 ** Director, Center for International Trade, 325 Sirrine Hall, Clemson SC 29634-1394