Institutions, Entrepreneurship and Channels to Sustained Economic Growth

In this paper, we build a simple model to integrate the findings and/or hypotheses in the diverse literatures related to economic development and growth. They include the literature on institutions attributed to Douglas North (1990), on entrepreneurs, innovations and technical progress attributed to Schumpeter (1934) and on the driving factors of economic growth in various theoretical and empirical contributions. The effort results in a comprehensive theory that is flexible enough to understand broad strategic lessons from diverse growth experiences across country and time. It is also specific enough to reveal the factors, channels, mechanism and the key to sustained economic growth