Economic Systems and Institutions

This paper focuses on a short review on the literature of institutions and economic systems, and the relationship between them. The institutions play a significant role in the economic development of a country. The study also focuses on the role of institutions in determination of financial prices, rate of return and social capital incorporated in a system. Protection of property rights, enforcement of effective law and efficient administration, as well as a variety of norms and civic mores, have all been related to greater economic performance over time. The results of this study can be utilized in the research of institutional economics, as they focus on bringing together different types of coordination systems in market economy.