Institutions and economic change: A critical survey of the new institutional approaches and empirical evidence

The purpose of this paper is to review the main literature that has analyzed the channels through which institutions influence economic change, hence development. The interest for this topic arises from the relatively recent consensus that has emerged among scholars and policy makers in considering institutions a key factor shaping the outcome of the economic game. The aim is pursued by discussing the theoretical approaches proposed within the New Institutional Economics to inquiry into institutional issues. Besides, the empirical evidence resulting from the major studies that have lately investigated the nexus between institutions and economic performance is presented as well.