The role of institutions in promoting economic growth from "summary" of Theory of Economic Growth by W. Arthur Lewis
Institutions play a crucial role in the promotion of economic growth. These institutions are the rules of the game in a society, which provide the framework within which economic activity takes place. They determine the incentives that individuals and firms face, and thus influence their behavior and decision-making. Institutions can be formal, such as laws and regulations, or informal, such as social norms and customs. Formal institutions provide the legal and regulatory framework that governs economic activity, while informal institutions shape the social and cultural context in which economic transactions occur. Strong institutions are essential for economic growth because they create an environment that is conducive to investment, innovation, and entrepreneurship. ...
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