Institutions and Economic Development on the Example of OECD Countries
DOI:
https://doi.org/10.15290/eejtr.2020.04.02.02Keywords:
institutional environment, formal institutions, informal institutions, economic development, soft modelling, PLSAbstract
The problem of economic development has been the subject of discussion in economic theory for hundreds of years. It is one of the most important issues in economics. To this day, it is crucial to specify the factors and conditions of this phenomenon. The purpose of this article is to identify the direction and strength of the relationship between the quality of the institutional environment and the level of economic development. The soft modelling method and analysis of the literature were applied to identify this relationship. Selected research methods allowed for the positive verification of the adopted hypothesis- institutional environment has a significant, positive impact on shaping economic development dynamics.
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