Previous research by economists has used the experience of a broad panel of
countries to assess the determinants of economic growth—see, for example, Barro (1991,
2000) and Barro and Sala-i-Martin (2003, Ch. 12). This literature has isolated a number
of variables that predict subsequent rates of economic growth. One general conclusion is
that successful explanations of economic performance have to go beyond narrow
measures of economic variables to encompass political and social forces. In particular,
the empirical results reveal important influences on growth from government policies and
public institutions.