The Conceptual Framework: Growth, Institutions, and Social Orders

2018 ◽  
Author(s):  
Andrea Lorenzo Capussela
Keyword(s):  
Open Access ◽  
Conceptual Framework ◽  
Social Order ◽  
Institutional Economics ◽  
Theoretical Framework ◽  
Institutional Reforms ◽  
Reversible Process ◽  
Main Determinant ◽  
Social Orders

This chapter lays out one part of the theoretical framework of the book, drawn from institutional economics. This literature maintains that institutions are the main determinant of long-term growth, and that to remain ‘appropriate’ institutions must evolve in synchrony with an economy’s progress through the stages of its development. Their evolution depends on a society’s openness to political creative destruction. Limited-access social orders tend to constrain it, to safeguard elites’ rents, and typically undermine progressive institutional reforms, breaking that synchrony. The transition from that social order to the open-access one is an endogenous and reversible process, in which inefficient institutions, which allow elites to extract rents, coexist with appropriate ones, which constrain their power and make it contestable. The hypothesis is advanced that Italy has not yet completed this transition, and that the tension between its efficient and inefficient institutions can endogenously generate shocks, which open opportunities for equilibrium shifts.

The Conceptual Framework: Collective Action, Trust, Culture, and Ideas

2018 ◽  
Author(s):  
Andrea Lorenzo Capussela
Keyword(s):  
Social Capital ◽  
Collective Action ◽  
Social Norms ◽  
Conceptual Framework ◽  
Social Order ◽  
Institutional Economics ◽  
Theoretical Framework ◽  
Collective Action Problem ◽  
Personal Trust

This chapter completes the theoretical framework of the book by juxtaposing institutional economics with the literature on the collective action problem, social norms, culture, and ideas. It discusses the foundations of the collective action problem and the role of institutions—formal (laws) and informal (social norms)—in overcoming it. It links these studies with those on social capital, civicness, and the origins of generalized inter-personal trust. It criticizes the view—frequent in analyses of Italy—that a society’s culture is an independent obstacle to its development, and argues conversely that institutions, civicness, trust, and culture are part of the extant social order, and co-evolve. It ends with a discussion of the role of ideas, which are freer from the grip of the extant equilibrium and can lead elites, distributional coalitions, and ordinary citizens and firms to revise their assessment of their own interests and support efficiency-enhancing reforms.

It Takes Two to Tango

2017 ◽  
Author(s):  
Haley J. Swedlund
Keyword(s):  
Foreign Aid ◽  
Institutional Economics ◽  
Theoretical Framework ◽  
Delivery Mechanism ◽  
Donor Agencies ◽  
Commitment Problems ◽  
Aid Policy ◽  
Over Time

Chapter 2 outlines the theoretical arguments of the book. The chapter first provides a theoretical framework for understanding aid policy bargaining between donor agencies and recipient governments. Then, drawing on theories of institutional economics, the chapter articulates how commitment problems in foreign aid are theorized to influence choices in aid delivery and the sustainability of aid delivery mechanisms over time. The chapter argues that the sustainability of a aid delivery mechanism depends on its ability to incentivize both donors and recipients to uphold their commitments over the long term.

scholarly journals The strength of collusion: A conceptual framework for interpreting hybrid social orders

2016 ◽  
Vol 65 (3) ◽  
pp. 395-410 ◽  
Author(s):  
Matías Dewey ◽  
Daniel Pedro Míguez ◽  
Marcelo Fabián Saín
Keyword(s):  
Conceptual Framework ◽  
Social Order ◽  
Decisive Role ◽  
Social Contexts ◽  
Weak States ◽  
Ethnic Segregation ◽  
Political Outcomes ◽  
Basic Services ◽  
Social Orders ◽  
Persistent Inequality

By moving away from dualistic perspectives that see social order as the product of strong states but not weak states, this article develops a conceptual framework for interpreting hybrid social orders, i.e. those established by both legal and extra-legal actors. The initial premise is that hybrid forms of social domination resulting from the interaction between legal and extra-legal actors, and regulated by a combination of rational bureaucratic and neo-patrimonial rules, produce relevant economic and political outcomes such as job creation, the supply of basic services and the production of authority. Especially in contexts of continuous economic crisis, ethnic segregation, social marginalization and persistent inequality, these outcomes have ordering effects both in terms of reducing uncertainty and regulating social expectations. Furthermore, in such social contexts, socially tolerated illegal markets play a decisive role. Supported by recent and innovative research, this article concludes with hypotheses intended to promote further research.

The Second Start of Transformation in Ukraine?

2014 ◽  
pp. 30-52 ◽  
Author(s):  
L. Grigoryev ◽  
E. Buryak ◽  
A. Golyashev
Keyword(s):  
Economic Growth ◽  
Armed Conflict ◽  
Political Crisis ◽  
Investment Climate ◽  
Institutional Reforms ◽  
Personal Consumption ◽  
Governance Quality ◽  
Political Turmoil

The Ukrainian socio-economic crisis has been developing for years and resulted in the open socio-political turmoil and armed conflict. The Ukrainian population didn’t meet objectives of the post-Soviet transformation, and people were disillusioned for years, losing trust in the state and the Future. The role of workers’ remittances in the Ukrainian economy is underestimated, since the personal consumption and stability depend strongly on them. Social inequality, oligarchic control of key national assets contributed to instability as well as regional disparity, aggravated by identity differences. Economic growth is slow due to a long-term underinvestment, and prospects of improvement are dependent on some difficult institutional reforms, macro stability, open external markets and the elites’ consensus. Recovering after socio-economic and political crisis will need not merely time, but also governance quality improvement, institutions reform, the investment climate revival - that can be attributed as the second transformation in Ukraine.

The Political Economy of Italy's Decline

2018 ◽  
Author(s):  
Andrea Lorenzo Capussela
Keyword(s):  
Political Economy ◽  
Tax Evasion ◽  
Social Order ◽  
Economic History ◽  
Multiple Equilibria ◽  
Institutional Economics ◽  
Coordination Games ◽  
The Political ◽  
Political Accountability ◽  
Private Goods

This book offers an interpretation of Italy’s decline, which began two decades before the Great Recession. It argues that its deeper roots lie in the political economy of growth. This interpretation is illustrated through a discussion of Italy’s political and economic history since its unification, in 1861. The emphasis is placed on the country’s convergence to the productivity frontier and TFP performance, and on the evolution of its social order and institutions. The lens through which its history is reviewed, to illuminate the origins and evolution of the current constraints to growth, is drawn from institutional economics and Schumpeterian growth theory. It is exemplified by analysing two alternative reactions to the insufficient provision of public goods: an opportunistic one—employing tax evasion, corruption, or clientelism as means to appropriate private goods—and one based on enforcing political accountability. From the perspective of ordinary citizens and firms such social dilemmas can typically be modelled as coordination games, which have multiple equilibria. Self-interested rationality can thus lead to a spiral, in which several mutually reinforcing vicious circles lead society onto an inefficient equilibrium characterized by low political accountability and weak rule of law. The book follows the gradual setting in of this spiral, despite an ambitious attempt at institutional reform, in 1962–4, and its resumption after a severe endogenous shock, in 1992–4. It concludes that innovative ideas can overcome the constraints posed by that spiral, and ease the country’s shift onto a fairer and more efficient equilibrium.

From Start-Up to Scale-Up

2018 ◽  
Author(s):  
Gilles Duruflé ◽  
Thomas Hellmann ◽  
Karen Wilson
Keyword(s):  
United States ◽  
Conceptual Framework ◽  
Public Policies ◽  
Scale Up ◽  
The United States ◽  
Smart Money ◽  
Start Up ◽  
The Us ◽  
The Creation

This chapter examines the challenge for entrepreneurial companies of going beyond the start-up phase and growing into large successful companies. We examine the long-term financing of these so-called scale-up companies, focusing on the United States, Europe, and Canada. The chapter first provides a conceptual framework for understanding the challenges of financing scale-ups. It emphasizes the need for investors with deep pockets, for smart money, for investor networks, and for patient money. It then shows some data about the various aspects of financing scale-ups in the United States, Europe, and Canada, showing how Europe and Canada are lagging behind the US relatively more at the scale-up than the start-up stage. Finally, the chapter raises the question of long-term public policies for supporting the creation of a better scale-up environment.

Organizing and Reorganizing Markets

2018 ◽  
Author(s):  
Nils Brunsson ◽  
Mats Jutterström
Keyword(s):  
Organization Theory ◽  
Institutional Economics ◽  
Theoretical Framework ◽  
Intermediate Result ◽  
Field Of Study ◽  
Mainstream Economics ◽  
Formal Organizations ◽  
Partial Organization ◽  
Similarities And Differences ◽  
Market Organization

Organizing and Reorganizing Markets is an edited volume that brings organization theory to the study of markets. The differences between markets and organizations are often exaggerated. Both are organized. Organizing exists in addition to other processes and phenomena that form markets: the mutual adaption among sellers and buyers as described in mainstream economics and the institutions described in institutional economics and economic sociology. Market organization can be analysed with the same type of theories used for analysing organization within formal organizations. Through the use of many empirical examples, the book demonstrates how this can be done. We argue that the way a certain market is organized can be understood as the (intermediate) result of previous organizing processes. We discuss such questions as ‘What drives market organizing and reorganizing processes? What makes various organizations intervene as market organizers? And how are the specific contents of market organization determined?’ The answers to these questions help us to analyse similarities and differences among organizing processes in formal organizations and those in markets. The arguments are illustrated by in-depth studies of many types of markets. The book is intended to open up markets as a field of study for scholars of organization. Although the chapters have different authors, they use and elaborate upon the same general theoretical framework. The book contributes to the issue of organization outside and among organizations where a fundamental concept is that of partial organization.

Credibility Trap: Japan today and China tomorrow

2006 ◽  
Vol 25 (1) ◽  
pp. 31-50
Author(s):  
Kensei Hiwaki ◽  
Junie Tong
Keyword(s):  
Human Development ◽  
Present Article ◽  
Socioeconomic Development ◽  
Sufficient Conditions ◽  
Theoretical Framework ◽  
Normative Framework ◽  
Specific Culture ◽  
Prevention And Cure ◽  
Necessary And Sufficient

This article provides a theoretical framework for a long-term socioeconomic lethargy (Credibility Trap) that results from the liquidation of holistic society-specific culture. As for example, it deals with the cases of Japan today and China tomorrow, elaborating on the slight of their respective society-specific cultures in a century-long process of “modernization”. The present theoretical framework primarily consists of three pivotal concepts, viz., Credibility Trap, society-specific cultures (Cultures) and market fundamentalism (Market), which facilitates a clear, concise and effective argument that the liquidation of their respective holistic Cultures may intimately relate to their actual and potential socioeconomic lethargy. Also, the present article concentrates on the elaboration of some promising avenues for prevention and cure of Credibility Trap. Such avenues comprise the necessary and sufficient conditions for a balanced socioeconomic development; a theoretical framework for a perpetual “virtuous” circle among cultural enrichment, comprehensive human development and balanced socioeconomic development; and a normative framework of multi-faceted value enhancement for vitality augmentation and cultural enrichment within a society.

Open Access Order and Interconnected Institutions in Brazil: A Challenge

2019 ◽  
Vol 12 (1) ◽  
pp. 1-40
Author(s):  
Guanghua Yu
Keyword(s):  
Open Access ◽  
Rule Of Law ◽  
Political Representation ◽  
Political Organizations ◽  
Historical Evidence ◽  
The Rule Of Law ◽  
Rights Protection ◽  
Economic Organizations ◽  
Property Rights Protection

AbstractThis article examines the evolution of democratic practice in Brazil. The article begins with a discussion on the country’s performance in terms of social equality, violence, and weak economy after the consolidation of democracy in 1985. Based on historical evidence, the article offers explanations concerning the weak performance in Brazil. The case of Brazil provides a challenge to the theory of open access order of North and his colleagues in the sense that open access to political organizations and activities does not necessarily lead to either better political representation or better economic performance. The case of Brazil also shows that open access to economic organizations and activities in the absence of the necessary institutions in the areas of property rights protection and contract enforcement, the financial market, the rule of law, and human resources accumulation does not lead to long-term economic growth.

Stock Market Development And Economic Growth in Nigeria

1998 ◽  
Vol 2 (1) ◽  
pp. 33-38 ◽  
Author(s):  
John C. Anyanwu
Keyword(s):  
Economic Growth ◽  
Risk Management ◽  
Stock Market ◽  
Conceptual Framework ◽  
Corporate Control ◽  
Market Development ◽  
Political Environment ◽  
Stock Market Development ◽  
Long Run

Is the stock market development important for economic growth in Nigeria? One line of research argues that it is not; another line stresses the importance of stock market development in allocating capital, acquisition of information about firms, easing risk management, mobilization of savings, and exerting corporate control. Indeed, some theories provide a conceptual framework for the belief that larger, more efficient stock markets boost economic growth. This article examines whether there is a strong empirical association between Nigerian stock market development and long-run economic growth. Our empirical results suggest that the Nigerian stock market development is positively and strongly associated with long-term economic growth. This implies that Nigerian policymakers should make concerted efforts at removing obstacles to stock market development while creating and sustaining an enabling macroeconomic and political environment for the market’s development.

Sign in / Sign up

Export Citation Format

Share Document