The Open Business Journal

2013, 6 : 1-13
Published online 2013 February 22. DOI: 10.2174/1874915101306010001
Publisher ID: TOBJ-6-1

Institutional Aspects of Economic Growth: Assessing the Significance of Public Debt, Economic Governance and Industrial Competition

Mattheus F.A. Goosen
Office of Research & Graduate Studies, Alfaisal University, P.O. Box 50927, Riyadh, 11533, Saudi Arabia.

ABSTRACT

Institutional aspects of economic growth are critically reviewed with emphasis on the fiscal crisis facing the European Union (EU). In particular the importance of public debt, economic governance, and industrial competition are assessed, as well as the effectiveness of econometric models in forecasting economic growth. Likewise, the debate on whether political institutions cause economic growth, or whether, alternatively, growth and human capital accumulation lead to institutional improvement is discussed. Positive and negative institutional factors on economic growth will also be briefly debated.

Keywords:

Institutions, economic growth, public debt.