New reading list: Market institutions and economic growth

Countries need appropriate institutions to sustain and consolidate the move to market-led growth. But which specific institutions will contribute to economic growth? What are the channels through which these institutions positively influence economic development?The empirical literature on economic growth has developed substantially over the past two decades, drawing on larger and richer databases and utilizing better econometric tools to explain how institutions relate to cross-country differences in growth performance. This reading list highlights some of this research and focuses on the concepts of New Institutional Economics, the link between pro-market institutions and growth, the effects of governance on economic development, and the relationship between democracy and growth.