Institutions and economic performance with an emphasis ontransaction costs

The main objective of institutions establishment is to reduce uncertainty in human transactions, and in fact reduce the uncertainty by providing life-style structures that determine the performance of economies in the long run. Thus, institutions provide a structure in which human beings create order with their help and try to reduce instability in their interactions and transactions. The amount of transactions and incomplete information and limited human mental capacity are the basis of the formation of institutions. In addition to the method The World Bank, some research institutes and international institutions to measure barriers to business in countries from surveys of corporate executives in different countries through survey questions, including institutional framework (government efficiency, justice and security), business regulation (openness of the economy, Competition rules, labor regulations, and capital market regulations), common practices But in management and they use it. The most important of these institutions is the World Economic Forum, which has been analyzing its international competitiveness since 1996 through surveys of corporate directors and the use of quantitative data. The present study is to investigate institutions and economic performance with an emphasis on transaction costs, which provides model estimation for 69 countries in 2017. Based on the results of model estimation, the research hypothesis was approved. Based on the calculated statistics the power of the model or some kind of stability of the estimated regression model was confirmed.

Keywords:

Economic performance , institutions , transaction costs , human capital , cross sectional data