Institutions, Institutional Change, and Economic Performance

Case Solution

Victor Abiad
Darden School of Business ()

Why are some countries so much richer than others? This tech note suggests a framework in which to begin answering this question. The first part identifies inefficient institutions as the root cause of economic differences between societies. The second part analyzes how these institutions are changing. And the last part suggests how the lessons of this institutional framework can be applied.

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