Domestic Institutions and Economic Performance: ‘Cocktail Capitalism’

Abstract

In Chapter 2 it was shown that despite numerous national differences among models of capitalism, the diversity of national forms of capitalism can be organized into three basic types: Anglo-Saxon capitalism, Continental capitalism and developmental capitalism. Following these conceptual clarifications, the quantitative analysis examined the links between institutions and economic performance. One of the key conclusions drawn from that econometric analysis is that, despite the difficulty of measuring institutions and key aspects of models of capitalism, various combinations of institutional factors affect growth differently because they are integral to both political and economic activities essential for economic growth.