The interest of this paper is to show that poor institutional quality was one of the main challenges for developing nations.
In fact, this quality has direct and indirect influences on economic growth of these countries. Our empirical attempt, dynamic panel data (GMM) and during the period 1998 to 2006, trying to clarify the direct and indirect effects of institutional quality on economic growth on the one hand and the other hand on the factor human capital.
Our sample consists of 100 countries divided in five areas to make a comparative analysis between the areas considered. The results show that the improvement of institutional quality through better human capital accumulation is associated with an increase in the level of economic growth in developing countries.
Key words : C19, J24, O47, C33