| Abstract: |
This article offers a provocative critique of the ability ofresearch on the impact of institutions on growth to offer immediateand practical recommendations for reforming and redesigninginstitutions in developing countries and transition economies.The literature traces the sources of growth to unalterable historicaland geographic features. It contains equally plausible recommendationsfor opposite courses of action. It is sometimes driven by fadsor recommends imitation of the latest success story. Some recommendationsare too vague or too general to constitute practical advice.The article suggests a Bayesian diagnostic procedure to identifythe causes of economic failure in an individual country as afirst step toward remedying the failure. JEL codes: O43, O17, O20, P30, P48 |
