Institutions and Economic Growth in the Resources Intensive Use Economies

Abstract

Nowadays the opinion that there are other essential factors except capital, labor and access to technology as in Solow model is quite widespread. In this way many economists and scientists consider institutional environment as one of the key elements that form countries’ socio-economic development. This work is aimed to develop the empirical case that economic development in the resources intensive use economies depends on institutions. The role of institutions is not the same in every group of resources intensive use economies that we divided them according their level of income. In the paper, we investigate the institutions influence on economic development of resources intensive use economies according different level of income. Our analysis reveals the increasing influence of institutional variables on the economic growth in accordance with the rise of income.