Institutions, Capital, and Growth
Joshua C. Hall, Russell S. Sobel, and George R. Crowley
The international development community has encouraged investment in physical and human capital as a precursor to economic progress. Recent evidence shows, however, that increases in capital do not always lead to increases in output. We develop a growth model where the allocation and productivity of capital depends on a country’s institutions. We find that increases in physical and human capital lead to output growth only in countries with good institutions. In countries with bad institutions, increases in capital lead to negative growth rates because additions to the capital stock tend to be employed in rent-seeking and other socially unproductive activities.
JEL Classification: B53, O10, I2 [Southern Economic Journal 2010, 77(2), 385–405
Só para lembrar, ok? O rent-seeking e os custos de transação, depois das recentes medidas de política econômica, parecem-me bem claras. O que você fará a respeito eu não sei, mas uma boa idéia é começar educando seus familiares e cobrando de maneira mais inteligente seus representantes.