Effects of institutional efficiency on economic growth of countries
Keywords:
Institutional efficiency, economic growth, data envelopment analysis, quantile regressionAbstract
In this paper, we analyzed the effect of efficient institutions on the economic growth of countries. The institutional efficiency index of each country was calculated through data envelopment analysis. Subsequently, through the estimation of a Quantile Regression Model, we showed that efficient institutions impact positively and significantly the economic growth in countries with different levels of development. It was also found that education is the most relevant factor for growth. Given this, we highlight the importance of public policies aimed at improving educational quality and institutional efficiency to make countries more economically prosperous.
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