Institutions, Policies and Growth in Europe: Quality versus Stability

Abstract:

What triggers growth? How can the EU Member States ensure conditions that have a proven positive effect on growth? These questions are relevant, not least considering the recent financial and economic crisis which represents the deepest downturn in world economy since Second World War. How important are institutions – that is to say, formal rules and capacity to enforce those rules – for the economic performance of a country? This SIEPS report discusses the relation between the quality of institutions and economic growth.