Institutions and Economic Growth

Instead of surveying the effects of institutions on economic growth through statistical analysis، this study tries to review them from the standpoint of institutional theorists with the aim of giving some explanations on economic growth. The study reveals that formulating appropriate policies to expedite economic growth، which is indeed resulted from the impacts of various institutional elements on economic growth، requires more than merely pure quantitative surveys. This means that to do so، the researchers should take into account the factors such as market-creating institutional components، institutional change know-how، and socio-political institutions'' impact on economic performance. On the other hand، apparently، from among the various solutions to forge economic growth، the one proposed by North and his colleagues، i. e. moving toward democratic order to reach economic growth is the best sustainable approach.