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Institutions, Economic Growth and International Competitiveness: A Regional Study

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Contemporary Issues in International Business

Part of the book series: The Academy of International Business ((AIB))

Abstract

This chapter focuses on institutions as key determinants of economic growth. We explore the effect of institutions in the Caribbean region that tends to be overlooked within mainstream IB research. Using a three-stage model, we test for cross-national variance and the influence of institutions on productivity and output. We found that institutions influence long-run economic performance and that some institutions matter more than others. Our evidence suggests that institutions designed to regulate and legitimise markets and constrain inefficiencies, significantly affect levels of productivity . In turn, institutions designed to stabilise markets could have a growth-maximising effect beyond which increased bureaucracy reduces incentives to increase productivity.

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Author information

Authors and Affiliations

  1. Newcastle Business School, Northumbria University, Newcastle, UK

    Roseline Wanjiru & Karla Simone Prime

Authors
  1. Roseline Wanjiru
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  2. Karla Simone Prime
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Corresponding author

Correspondence to Roseline Wanjiru .

Editor information

Editors and Affiliations

  1. Henley Business School, University of Reading, Reading, United Kingdom

    Davide Castellani

  2. Henley Business School, University of Reading, Reading, United Kingdom

    Rajneesh Narula

  3. Henley Business School, University of Reading, Reading, United Kingdom

    Quyen T. K. Nguyen

  4. Henley Business School, University of Reading, Reading, United Kingdom

    Irina Surdu

  5. Henley Business School, University of Reading, Reading, United Kingdom

    James T. Walker

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Wanjiru, R., Prime, K.S. (2018). Institutions, Economic Growth and International Competitiveness: A Regional Study. In: Castellani, D., Narula, R., Nguyen, Q., Surdu, I., Walker, J. (eds) Contemporary Issues in International Business. The Academy of International Business. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-70220-9_6

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