What triggers growth? How can the EU Member States ensure conditions that have a proven positive effect on growth? These questions are relevant, not least considering the recent financial and economic crisis which represents the deepest downturn in world economy since Second World War. How important are institutions – that is to say, formal rules and capacity to enforce those rules – for the economic performance of a country?
Although today we have access to an extensive body of research on the quality of institutions, the authors of this report add new insights by studying the effect of the stability of institutions on economic growth.