Do Institutions matter Essay Example | Topics and Well Written Essays - 500 words

Do Institutions matter - Essay Example The basic explanations that have been provided by economists to illustrate on how institution spurs economic growth haven’t been satisfactorily. Furthermore, the theories provided for which are made to guide on the two principles does not provide for full understanding of the variables and thus have lapses. Neither are the statistical tools for analysis in the case of time series are enough to show direct correlation between the two. Thus, this provides for inspiration or stimuli (Rodrà ­guez, 2013) for the article to provide for a broader way to view the two issues and be flexible in analysis. Institutions does not necessary lead to economic development but the latter can always be achieved in other ways. Development to a country can be stimulated through creation of wealth that expands various sectors in the economy. By doing so, we provide for expansionary measures that make the institutions better and increase growth. We do not need more mature institutions for development to occur. Such is the case in more developed nations who developed earlier without any key institutions. Even if institutions spur growth, then it cannot apply to all countries. For example, nations can always import ideas such as technology or train labor to help growth within them. Methods such as protection of properties majorly employed by the capitalists to make institutions grow are very good and can always be beneficial to nations. But the virtue will only lead to strong institutions to unique ones in the economy more so in countries where there is less government controls. The article uses questionnaires to collect data. It presents issues in form of queries that are answered by analyzing various world institutions and economic policies to generate data. This is further enhanced, by use of samples to explain on how diverse countries developed and what made their institutions stronger (Rodrà ­guez, 2013). To validate the data, it