Naslov
How do institutions impact economic development? Theoretical review

Autori
Barković, Ivana

Vrsta, podvrsta i kategorija rada
Poglavlja u knjigama, znanstveni

Knjiga
Interdisciplinary Management Research IV

Urednik/ci
Barković, Dražen ; Runzheimer Bodo

Izdavač
Ekonomski fakultet Sveučilišta Josipa Jurja Strossmayera u Osijeku ; Hochschule Pforzheim University of Applied Sciences

Grad
Osijek : Pforzheim

Godina
2008

Raspon stranica
64-84

ISBN
978-953-253-044-5

Ključne riječi
institutions, development, new institutional economics

Sažetak
One of the most popular candidates for the fundamental causes of cross-country differences in prosperity are institutions, broadly defined as the “ rules of game” consisting of both formal legal rules and the informal social norms that govern individual behavior and structure social interactions. The scholarly thinking about how and why development does or does not take the place has been increasingly calling upon the New Institutional Economics (NIE) which theoretically supports the empirical evidence that some societies are organized in a way that upholds the rule of law, encourages investment in machinery, human capital and in better technologies, facilitate broad-based participation in economic and political life by citizens and support market transaction (Acemoglu et el., 2003: 4). In the nutshell, these societies are those that are possessing ‘ good institutions'. This paper focuses on the role of institutions in the economic development. Section 2 defines institutions, identifies various levels and types of institutions, as well as emphasizes the set of problems that characterizes the field of NIE. Section 3 builds up the link between institutions and development through discussing the relations between institutions, incentives and transaction costs, formal and informal institutions and institutional and development outcomes. Section 4 provides a framework for analyzing the impact of institutions on development, which can be used as a guideline when determining the impact of institutions and institutional change to the development outcome in any case study. The paper concludes with the remarks related to the future research challenges.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA