An institutional framework is the set of formal rules, such as laws, regulations, and property rights, and informal norms and enforcement mechanisms that structure economic and social interaction within a jurisdiction or organisation. Institutional economics treats it as a primary determinant of economic outcomes, since well-defined property rights and enforceable contracts reduce transaction costs and enable investment that would otherwise be too risky to undertake. A robust institutional framework is widely identified as a precondition for sustained economic growth, because it allows actors to make credible long-term commitments. Within organisations, an institutional framework similarly comprises the governance structures, reporting lines, and internal controls that constrain and enable corporate decision-making.