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Economic growth is a complicated process which is affected by several factors. Standard neoclassical economic approach didn’t address the effects of institutional factors on economic growth but such effects are started to be considered in economic growth literature together with the new institutional economy. According to the new institutional economic approach institutions decrease the uncertainty are effective on the cost of transaction and conversion and also impact economic performance by directing economic activities towards productive or non- productive fields. Within this framework, effects of institutional factors on economic growth in Eurasian Countries between 1996 and 2008 are searched via panel data analysis method by use of World Bank’s, Heritage Foundation and Freedom House data sets. According to the findings collected, guaranteeing property rights, increasing quality of regulation and civil liberties affect positively economic growth on Eurasian Countries.

Effects of Institutional Factors on Economic Growth in Eurasian Countries