The relationship between economic growth and institutional structure in OECD countries: Cross-sectional analysis

In recent years, the corporation and the concepts of institutional structure have been one of the most popular concepts in the literature. In particular, the new growth theories have focused on the effects of corporations and the institutional structure on macro-level economic performance. In these theories, corporation is the most important component for the economic growth process. The aim of this study is to test the effect of institutional structure on economic growth in 30 OECD countries by using the data of 2009 through the cross sectional analysis method. In the study, the variables of political stability, accountability, the effectiveness of governments, regulatory quality, the rule of law and the control of corruption were used as institutional structure indicators. According to the obtained results, the variables of accountability and the rule of law have a statistically significant and positive effect on economic growth. On the other hand, no significant interaction was found between the institutional structure and economic growth. © Ahmet Yilmaz Ata, Aylin koç, Hasim Akça, 2012