Institutional differences and capital accumulation explain why rich countries remain rich
Multiple studies demonstrate that robust institutional frameworks and continuous capital accumulation are essential determinants of sustained economic growth and the persistence of wealth across nations.
The retrieved papers uniformly support the claim that capital accumulation (physical and human) and institutional quality (such as property rights, regulatory environments, and governance) are critical drivers of long-term economic development and explain growth disparities between countries.
P. Prasetyo, N. R. Kistanti. Human capital, institutional economics and entrepreneurship as a driver for quality & sustainable economic growth. 2020. https://doi.org/10.9770/jesi.2020.7.4(1)
Highlights institutional economics and human capital as core pillars driving sustainable economic growth.
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Isaac Bawuah. Bank stability and economic growth in Sub-Saharan Africa: trade-offs or opportunities? And how do institutions and bank capital affect this trade-off?. 2024. https://doi.org/10.1080/23322039.2024.2381695
Demonstrates that institutional quality enhances the positive effects of capital on economic growth.
Dingyuan Liu. The Shaping Mechanism of Institutional Quality Differences on the Long-Term Economic Growth Path and Its Theoretical Explanation. 2025. https://doi.org/10.54097/qnxwr404
Analyzes how property rights, transaction costs, and institutional quality shape long-term growth paths and development differences.
V. Vydobora. THE CONCEPT OF CAPITAL ACCUMULATION AND ECONOMIC GROWTH IN THE CLASSICAL SCHOOL OF POLITICAL ECONOMY. 2022. https://doi.org/10.32836/2521-666x/2022-77-1
Examines classical political economy principles showing that capital accumulation and institutional environments are key growth drivers.
Kanxiang Chen, Weilun Huang. Joel Mokyr's Contribution to the Nobel Prize: The Economic Growth Theory of Knowledge Dissemination and Institutional Innovation. 2026. https://doi.org/10.62517/jse.202611107
Discusses how institutional innovation and knowledge accumulation explain the Great Divergence and sustained economic growth.
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