In each successive regime, we have had powerful individuals who have overridden political and economic institutions for the benefit of a privileged few. In a detailed review of literature on the importance of institutions on economic development, Luca Ferrini delineates four channels through which institutions explain development. Protection of property rightsOne is that institutions determine the cost of economic transactions. Two is that institutions determine the degree of appropriability of return to investment. Four, institutions determine the degree to which the environment is conducive to cooperation and increased social capital.

Source: Standard Digital July 16, 2021 19:41 UTC