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Working paper

Institutions, Firms and Economic Growth (WP 04/19)

Issue date: 
Wednesday, 1 September 2004
Status: 
Current
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Document Date: 
Publication category: 
JEL classification: 
D00 - Microeconomics: General
D20 - Production and Organizations: General
J24 - Human Capital; Skills; Occupational Choice; Labor Productivity
K00 - Law and Economics: General

Formats and related files

This paper reviews the literature on institutions and explores the ways in which institutions can influence economic growth, with a particular focus on how institutions affect the use that firms make of human capital to improve their productivity.

Abstract

This paper reviews the literature on institutions and explores the ways in which institutions can influence economic growth, with a particular focus on how institutions affect the use that firms make of human capital to improve their productivity. It discusses the influence of underlying institutions, such as law and order and secure property rights, on the general environment within which the economic activities of production and exchange takes place. It also explores the influence of activity-specific institutions, such as labour market institutions, on firm decisions about resource use and innovation and through these on economic activity and economic growth.

Disclaimer

The views, opinions, findings, and conclusions or recommendations expressed in this Working Paper are strictly those of the author(s). They do not necessarily reflect the views of the New Zealand Treasury. The Treasury takes no responsibility for any errors or omissions in, or for the correctness of, the information contained in these working papers. The paper is presented not as policy, but to inform and stimulate wider debate.

Last updated: 
Tuesday, 23 October 2007