Abstract:

Comparing economic systems and economic performance which is connected with the economic systems is part of comparative economics. Recently many researchers focused on the role of macroeconomic policy and especially on institutional changes with respect to its impact on economic performance. There is a vast literature and empirical evidences based on modern panel regression analysis. Yet, the role of institutions is still not examined in appropriate depth. The new comparative economics deals with this research gap and aims to describe important aspects of institutional quality. The aim of this paper is to contribute to this kind of research discussion by adding knowledge that institutional quality is different in different types of capitalism. Since in various groups of countries various capitalism models were adopted it in various economic performance results. The analysis undeniably shows that higher institutional quality leads to higher economic performance.