scholarly journals Economic policy for development and the new institutional economics

Catallaxy ◽  
2020 ◽  
Vol 5 (2) ◽  
pp. 61-73
Author(s):  
Tomasz Legiedz
Keyword(s):  
Economic Development ◽  
Development Economics ◽  
Institutional Economics ◽  
Descriptive Analysis ◽  
New Institutional Economics ◽  
Development Theory ◽  
Institutional Perspective ◽  
Fundamental Factor ◽  
Current State ◽  
Starting Point

Motivation: Economists have increasingly emphasized the importance of institutions as a fundamental factor for economic development. However, too frequently institutional approach used in economics is simplified, both from the starting point in defining an institution and during the analysis itself. Aim: The aim of this article is to summarise the current state of knowledge on the use of the institutional perspective in the research on the economic development of developing countries. Materials and methods: The analysis is conducted from the perspective of the new institutional economics. The article uses the qualitative analysis method that includes a literature review and descriptive analysis. Results: The first part briefly describes the contribution of the new institutional economics to the research on the economic development. The second part demonstrates how the institutional perspective is used in the mainstream economics, while the third, how it is used in the development economics. Although the contribution of the new institutional economics to the development theory is significant, in practice, it is very difficult to provide clear guidelines for development policy. This is the reason why there is a huge difference between researching economic development in the spirit of the new institutional economics and how institutions are implemented in the mainstream and development economics.

Can an unwilling horse be made drink?

2011 ◽  
Vol 7 (4) ◽  
pp. 511-516 ◽  
Author(s):  
YOUNG BACK CHOI
Keyword(s):  
Economic Development ◽  
Institutional Economics ◽  
Developed Countries ◽  
New Institutional Economics ◽  
Development Theory ◽  
Critical Examination ◽  
Economic Democracy ◽  
Least Developed Countries ◽  
Push Down ◽  
Economic Development Theory

Abstract:In his critique of the newer approach in economic development emphasizing institutional reforms, Ha-Joon Chang, in his article titled ‘Institutions and Economic Development: Theory, Policy and History’, equates New Institutional Economics with the program of liberal reforms for least developed countries (LDCs) and blames the former for the alleged failure of the latter. He argues with some justice that the dominant discourse in New Institutional Economics insufficiently appreciates the complexity of institutions; as a consequence, the difficulty of transplanting institutions is largely discounted. His case, however, is marred by his attempt to push down his ideological biases by marshalling inchoate, highly questionable and often contradictory ideas as facts. Going beyond a critical examination of the New Institutional Economics inspired discourse in development economics, he advocates his own version of beneficial development policies for LDCs – namely, economic democracy and industrial policies. His proposals are not only highly questionable, but they amount to adopting a double standard of exempting himself from the very criticisms he levies against New Institutional Economics – ignoring the difficulty of importing foreign institutions. Presuming to play God, like many development economists, he ignores the essential fact that an unwilling horse cannot be made to drink.

Governing the Environment: the Intitutional Economics Approach

2009 ◽  
pp. 61-86
Author(s):  
Arild Vatn
Keyword(s):  
Transaction Costs ◽  
Environmental Governance ◽  
Institutional Economics ◽  
Specific Area ◽  
New Institutional Economics ◽  
Neoclassical Economics ◽  
Institutional Perspective ◽  
Institutional Structures ◽  
Plural Rationalities ◽  
Jel Classifications

- Analyzing environmental governance implies foremost to analyze institutional structures and their implications. In doing so, the present paper utilizes insights primarily from the tradition of classical institutional economics. The paper is divided in three. In the first part I describe the main features of the classical position and compare it briefly with that of neoclassical economics and the tradition of new institutional economics. In the second part I clarify what is considered the main aspects of governance as seen from an institutional perspective. In part three I move to the more specific area of environmental governance. The concept of resource regimes is defined. Moreover I analyze how different regimes influence which environmental problems appear and how they can be treated. I discuss how institutions influence the formation and articulation of knowledge and values, how they form and protect interests, how they influence the level of transaction costs and hence the possibilities for coordination, and finally how they form the motivations underlying human choices in concrete contexts. Given that all these variables are shown to be endogenous to the institutional system, the use of comparative analysis in the assessment of various governance options is emphasized.Keywords: classical institutional economics, interdependence, resource regimes, value articulation, interest protection, transaction costs, plural rationalities.JEL classifications: B52; Q50; D02; D70.

Swings of the Pendulum: A Review of Theory and Practice in Development Economics

2000 ◽  
Vol 44 (1) ◽  
pp. 17-23 ◽  
Author(s):  
A.J. Kondonassis ◽  
A.G. Malliaris ◽  
T.O. Okediji
Keyword(s):  
Economic Development ◽  
Development Economics ◽  
Evolutionary Process ◽  
Developed Countries ◽  
Development Planning ◽  
Theory And Practice ◽  
Less Developed Countries ◽  
Current State ◽  
Planning Strategies ◽  
Country Specific

The first purpose of this paper is to reveal some insights offered by our experiences in theorizing about development economics and in doing so to shed some light on the current state of economic development. The second purpose of this paper is to review some practices of economic development planning. These practices have initially followed swings in antithetical positions. Yet, it will be argued that eventually development practices have followed a synthetic or evolutionary process. Some of the findings of the paper include that theories and policies have a time and place; that development planning strategies must recognize both the economic and non economic characteristics of less developed countries; that development planning strategies should be country specific.

scholarly journals Institutions and economic development: theory, policy and history

2010 ◽  
Vol 7 (4) ◽  
pp. 473-498 ◽  
Author(s):  
HA-JOON CHANG
Keyword(s):  
Economic Development ◽  
Institutional Economics ◽  
Private Property ◽  
Free Market ◽  
Development Theory ◽  
Private Property Rights ◽  
Dominant Discourse ◽  
Heterogeneous Samples ◽  
Poor Understanding ◽  
Economic Development Theory

Abstract:The article tries to advance our understanding of institutional economics by critically examining the currently dominant discourse on institutions and economic development. First, I argue that the discourse suffers from a number of theoretical problems – its neglect of the causality running from development to institutions, its inability to see the impossibility of a free market, and its belief that the freest market and the strongest protection of private property rights are best for economic development. Second, I point out that the supposed evidence showing the superiority of ‘liberalized’ institutions relies too much on cross-section econometric studies, which suffer from defective concepts, flawed measurements and heterogeneous samples. Finally, I argue that the currently dominant discourse on institutions and development has a poor understanding of changes in institutions themselves, which often makes it take unduly optimistic or pessimistic positions about the feasibility of institutional reform.

scholarly journals A Sustainable Tourism Based on a New Institutional Economics Approach: Ecotourism Based on the Community in the Gasan Gadang Fishermen Village

2021 ◽  
Vol 934 (1) ◽  
pp. 012031
Author(s):  
L Zamzami ◽  
A Azwar ◽  
E Ermayanti
Keyword(s):  
Environmental Impacts ◽  
Institutional Economics ◽  
Descriptive Analysis ◽  
New Institutional Economics ◽  
Environmental Aspects ◽  
Change Analysis ◽  
Community Based ◽  
Test Analysis ◽  
Significant Difference ◽  
The Impact

Abstract This study aimed to determine the patterns of development and implementation of community-based ecotourism management and identify the impact of the community-based ecotourism in Gasan Gadang Village on the economic, social, and environmental aspects of the surrounding community. The methodology used was descriptive analysis with a new institutional economics approach and the Kruskal-Wallis Test analysis. The patterns of development and implementation of community-based ecotourism management with all levels of social change analysis, including formal and informal rules such as culture, customs, habits of Gasan Gadang villagers, institutional and governance management, and even the economy, are considered good. The Community-based ecotourism management has adopted the theory of resource allocation among stakeholders of Gasan Gadang Village. The findings of this study showed that community-based ecotourism institutions and management bring positive impacts on economic, social, and culture. There was no significant difference among economic, social, and environmental impacts between the non-authorities and community-based ecotourism authorities of Gasan Gadang Village. Thus, it could be said that the benefits of community-based ecotourism received by the community were all the same. Everyone got positive benefits. However, based on the findings, it could be seen that the biggest difference was the economic impacts followed by the social impacts, while the smallest difference is the environmental impacts. From this situation, it could be concluded that the performance of community-based ecotourism authorities in Gasan Gadang Village was good and positively impacted the economic, social, and environmental aspects of the Gasan Gadang Village fishermen community.

scholarly journals The major innovations of Chinese economic development theories in the new era

2018 ◽  
Vol 1 (1) ◽  
pp. 13-29 ◽  
Author(s):  
Yinxing Hong
Keyword(s):  
Political Economy ◽  
Economic Development ◽  
Low Income ◽  
World Economy ◽  
Chinese Economy ◽  
Development Theory ◽  
Middle Income ◽  
Content Type ◽  
Development Stages ◽  
Starting Point

Purpose At present, the Chinese economy has entered the “new normal” phase with the transformation of development stages from the low-income to the middle-income ones. Accordingly, there appear a series of innovations in development theories. Innovations involve creative destructions. Therefore, innovative development theories at the present stage either deny the prevailing principles of development economics, or deny the theories that once effectively guided development at the low-income stage, or even sublate some of the development polices which were propelled and proved effective at the beginning of the reform and opening-up. The fundamental reason is that, as the development stages evolve, there occur new development tasks, new periodical characteristics and new laws of development. The paper aims to discuss these issues. Design/methodology/approach Any development theory from abroad will find it difficult to correctly guide and clarify development problems in a socialist country, such as the huge population and the extreme imbalance between the urban and the rural and among regional developments. Findings In conclusion, China, as a large world economy, has made innovations in its economic development theory, which indicates that it intends to perfect itself rather than seek hegemony. As the world’s second largest economy, China should adapt to the transformation and further free people’s minds instead of adhering to the old patterns of thinking. It should think over the path of development for a great world economy from the historical starting point of a large world economy and find development strategies to transform itself from a large economy to a great economy, so as to realize the dream of the Chinese nation to build a powerful country. Originality/value Only political economy studies both the relations of production and the productive forces, and only a theory combining both can correctly guide China’s economic development, which especially needs to be promoted by taking advantage of socialist economic system. Therefore, the first and foremost principle for a socialist political economy with Chinese characteristics is to insist on liberating and developing productive forces.

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