Culture, institutions and economic growth

In his article 'Institutions and Economic Development: Theory, Policy and History', Ha-Joon Chang rightly argues that historical evidence does not irrefutably suggest that countries characterized by free markets perform better than those in which the state plays a much more prominent role. However, his method of substantiating his claims by means of examples from different sources and periods does not convince. A more systematic and theoretically founded approach is needed. This comment focuses on the cross-section versus time-series approach and the relation between culture, institutions and economic development.