The Role of Institutional Structure Explaining the Growth Differences across Countries: Panel Data Analysis

The question of why some countries grow faster than other countries is one of the main issues discussed by economists for many years. In recent years, institutional structure has been gaining increasing relevance in economic growth literature to explain growth differences across countries. In this study, the effects of institutional structure on economic growth analyzed for 110 countries using the panel data during the period 2000-2009 by using different indicators to represent the institutional structure. The results revealed that the effect of institutional structure on the economic growth differs by the development level. Moreover, institutional structure is one of the important determinants of economic growth especially in the developed countries.