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By:Aizat Yasmin
Published on 2020 by

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This paper hopes to serve as a primer, firstly for this Author, regarding the concept of Institutional Economics; a foundation and an enabling environment, which allows economics to function and to be free. Firstly, we focus on the topic of institutions within the scope of economic development, and ask the simple question, |Why some countries are poor, and why some countries are rich?| In terms of set up, this paper is guided by Dani Rodrik & Arvind Subramanian's 2003 article, |The Primacy of Institutions (and what this does and does not mean).| I looked at how institutions, market openness and geography effect economic development. Both an OLS and pooled OLS model are employed, with the results showing that, institutions account for the largest variation in income. The data is sourced from the Heritage Foundation, 2019 Index of Economic Freedom. Secondly, a discussion of Brunei Darussalam, my home country is presented, trying to link ideas of institutional economics, economic freedom, entrepreneurship and economic development.

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