This dissertation explores the multifaceted role of institutions in promoting economic growth, reducing unemployment, and mitigating poverty through a series of rigorous empirical analyses. Utilizing Williamson's (2009) institutional framework and leveraging data from the World Value Survey and World Governance Indicators, this research underscores the pivotal roles of governance such as voice and accountability, control of corruption, and regulatory quality in enhancing economic prosperity. Furthermore, it highlights the amplifying effect of social trust on the efficacy of formal institutions. Employing robust methodologies, including generalized linear models and fixed effects models, the study provides compelling empirical evidence for these relationships. The dissertation also examines the interplay between governance and labour market institutions, demonstrating that robust governance not only fosters economic growth but also substantially mitigates unemployment. This part of the analysis confirms that effective governance complements economic growth to further reduce unemployment, with findings suggesting that sound policy formulation, improved public service capacity, and private sector regulation are key drivers. Furthermore, the research delves into the relationship between anti-poverty reforms and governance, along with social values. It reveals that successful poverty alleviation requires the combined support of good governance and cultural norms that build trust in individuals and institutions. These results indicate that policy measures should prioritize strengthening formal institutions and fostering social trust to achieve sustainable economic outcomes.