The institutional framework of economic development
Abstract
This paper considers issues that are of relevance for the design and development of an institutional framework that is conducive to strong economic growth. It entails exploring answers to the following, hitherto not-much-discussed, questions: (1) What institutions are necessary for high quality growth and development, and what form should they take? (2) How are these institutions acquired? and (3) What is the optimal sequence for implementing institutional reforms? The resolution of these issues is important for a better understanding of the role of institutions in the growth process, and for the formulation of strategies for implementing growth-oriented institutional reforms and/or institutional innovations.