However, as pointed out earlier, many of these countries had similar resources or human capital. As a result, in the last few decades, economists have turned their attention to the role of institutions in shaping the development trajectories of nations. It has been seen that countries that perform poorly in development are also the countries that have weak institutions. Inequality rises while human capital erodes. In the last few years, development economists have modelled this role of institutions in shaping the development trajectories of countries.

Source: dna May 06, 2018 02:48 UTC