Dynamic Analysis of the Impact of Economic Variables, Political and Institutional (Property Rights, etc.) on Economic Growth in Selected Countries of the World

New institutional economy introduced institutional and political factors as well as economic variables as factors affecting economic growth which have led to the appearance of new economic literature and it is developed from new theory of endogenous growth and macro political economy. New institutional economy is involved in a wider set of explanatory variables which are evolved due to cultural, social, political and economic infrastructures in comparison to other schools. In this article, the empirical analysis of the impact of economic, political and institutional variables on economic growth in the endogenous growth models with using regression analysis and GMM model is generalized to selected countries of world at the three levels of development during the period of 1990-2013.Macroeconomic stability has a positive effect on economic growth. The hypothesis that political instability has a negative effect on economic growth is confirmed. The variable of cabinet change would be a better alternative for the political instability variable than other variables. Improvment of institutional variables, the efficiency of legal structure and preserving property rights, ethnic homogeneity and higher economic freedom are crucial factors to encourage investment and economic growth. The impact of economic, political and institutional variables on economic growth have less coefficient in countries with high per capita income which have more appropriate facilities and infrastructure for the growth and development, but these coefficients are large in countries with average and low per capita income because of neglecting institutional variables, political volatility and lack of economic stability in this countries.