Institutions and property rights are crucial for growth from "summary" of Growth Theory by Robert M. Solow
Institutions and property rights play a crucial role in fostering economic growth. Without clear property rights, individuals lack the incentive to invest in physical and human capital. In the absence of secure property rights, there is a risk that investments will be expropriated by the state or other individuals, leading to a lack of investment in productive activities. Institutions also play a key role in economic growth by providing a stable framework for economic activity. Institutions such as the legal system, regulatory bodies, and government agencies help to establish the rules of the game and enforce contracts, which are essentia...
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