In recent years, there has been an increasing realisation that political institutions and governance matter when explaining economic growth in developing countries. Here, political institutions refer to the process of collective decision-making and the checks on politicians and politically and economically powerful interest groups. Governance refers to the capability of the state to provide public goods and how the state intervenes in encouraging or discouraging economic activity by various different actors.
Sen, K. (2016). Governance, politics and growth. GSDRC Professional Development Reading Pack no. 48. Birmingham, UK: University of Birmingham. 3pp