Institutions and Credit Ratings

Abstract

This experiment investigates the relationship between these two traits in order to broaden the view and depict the influence of institutions on not just economic development as conventionally defined but also on country credit ratings. In this work, I demonstrate how we can determine the link between a country's credit ratings and the performance of its institutions. I utilized a data collection of nations and indicators of their performance on institutional indicators, including property rights, judicial efficacy, and so on, in my analysis. Finally, I come to the conclusion that there is a substantial link between an effective institution and a better rating in credit reports conducted by prominent corporations in this field. In terms of trustworthiness, I also note the experiment's limitations.