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Bad institutions may be a significant constraint on economic growth that is not captured in the growth theory models. Explain why having good institutions is

Bad institutions may be a significant constraint on economic growth that is not captured in the growth theory models. Explain why having good institutions is potentially so important for economic growth in developing countries and give at least one example of how bad institutions could limit growth. If you were to recommend ONE policy change to a developing country government to help improve its institutions, what would it be and why?

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