...and lones, 1999). The quality of "social infrastructure" is primarily related to the effectiveness of institutions and government policies that make up...environment within which individuals and firms make investments, create and transfer ideas, and produce goods and services. It is closely related to political,...

...most of the variation in output per worker across countries cannot be explained by endowments. They conclude that a country's long-run economic performance is determined primarily by the institutions and policies that make up the economic environment within which individuals and firms make investments,...