scholarly journals “INSTITUTIONAL CAPITAL” AS A FACTOR OF SUSTAINABLE DEVELOPMENT ‐ THE IMPORTANCE OF AN INSTITUTIONAL EQUILIBRIUM / INSTITUCINIS KAPITALAS KAIP DARNAUS VYSTYMOSI VEIKSNYS – INSTITUCINĖS PUSIAUSVYROS SVARBA

2008 ◽  
Vol 14 (2) ◽  
pp. 144-150 ◽  
Author(s):  
Joost Platje
Keyword(s):  
Sustainable Development ◽  
Theoretical Model ◽  
Institutional Economics ◽  
Important Determinant ◽  
Informal Institutions ◽  
New Institutional Economics ◽  
Economic Effects ◽  
Formal Institutions ◽  
Institutional Capital

The main aim of this article is to provide a basis for changing the focus in New Institutional Economics (NIE) from the economic effects of institutions to the importance of “institutional capital” for sustainable development. First, a theoretical model of NIE is presented in the context of sustainable development. Then, the concept of an institutional equilibrium (where informal institutions support and strengthen formal institutions) is discussed as an important determinant of “institutional capital” stimulating or hampering sustainable development. Santrauka Šio straipsnio tikslas – pateikti naujos institucinės ekonomikos (NIE) pokyčius, kai pastebimas perėjimas nuo ekonominių institucijų efektų prie institucinio kapitalo plėtotės darnaus vystymosi kontekste. Visų pirma autorius pateikia teorinį NIE modelį darnaus vystymosi aplinkoje. Vėliau nagrinėjama institucinės pusiausvyros koncepcija (atvejis, kada neformalios institucijos palaiko ir stiprina formaliąsias institucijas). Autorius konceptualiai apibrėžia stimuliacinį ir prevencinį šios koncepcijos poveikį sąveikaujant instituciniam kapitalui bei darniam vystymuisi.

Re-Thinking the Role of Institutions in Neoliberalism From New Institutional Economics Perspective

2020 ◽  
pp. 25-40
Author(s):  
Ilke Civelekoglu ◽  
Basak Ozoral
Keyword(s):  
Economic Growth ◽  
Political Economy ◽  
Developing Countries ◽  
Property Rights ◽  
Institutional Economics ◽  
New Institutional Economics ◽  
The Political ◽  
Formal Institutions ◽  
Fertile Ground

In an attempt to discuss neoliberalism with a reference to new institutional economics, this chapter problematizes the role of formal institutions in the neoliberal age by focusing on a specific type of formal institution, namely property rights in developing countries. New institutional economics (NIE) argues that secure property rights are important as they guarantee investments and thus, promote economic growth. This chapter discusses why the protection of property rights is weak and ineffective in certain developing countries despite their endorsement of neoliberalism by shedding light on the link between the institutional structure of the state and neoliberalism in the developing world. With the political economy perspective, the chapter aims to build a bridge between NIE and political economy, and thereby providing fertile ground for the advancement of NIE.

scholarly journals The Impact of Institutions on the Evolution of Tourism Accommodation Format: Evidence from Wulingyuan, China

2019 ◽  
Vol 11 (10) ◽  
pp. 2882
Author(s):  
Ting Jiang ◽  
Shaobing Zhuo ◽  
Chaozhi Zhang ◽  
Jun Gao
Keyword(s):  
Sustainable Development ◽  
Informal Institutions ◽  
Evolution Process ◽  
Formal Institutions ◽  
Tourist Destination ◽  
The Sustainable Development ◽  
Formal And Informal Institutions ◽  
Industry Needs ◽  
The Impact ◽  
Current Stage

This paper examines the impact of institutions on evolution of tourism accommodation format in Wulingyuan, a well-known tourist destination in China, from the perspective of institutional cluster embeddedness. Data were primarily collected through interviews and participant observations. The findings show a five-stage evolution process starting from introduction (1982–1988), through growth (1989–2000), adjustment (2001–2004), and upgrade (2005–2010) to the current stage of individualization (2011–present). During the process, the informal institutions work to suppress, conflict with the formal institutions, yet transform into formal institutions in the end. In such a process, institutional loopholes and frictions are the norm, and tourism accommodation format evolves from extensive development to sustainable development. It suggests that the sustainable development of the tourism accommodation industry needs the synergy of formal and informal institutions.

Economic Effects of Electronic Reverse Auctions

2011 ◽  
pp. 57-76 ◽  
Author(s):  
Ulli Arnold ◽  
Martin Schnabel
Keyword(s):  
Institutional Economics ◽  
Theoretical Foundation ◽  
New Institutional Economics ◽  
Economic Effects ◽  
Reverse Auctions ◽  
Holistic View ◽  
Procurement Process ◽  
Transaction Process

This chapter describes the economic effects caused by the use of electronic reverse auctions along the procurement process. It argues that an analysis of these economic effects requires the consideration of the whole transaction process. The approaches of the new institutional economics provide a theoretical foundation for the analysis. The second part of the chapter deals with the single steps of an auction-integrated procurement process. Through this holistic view of the procurement process the authors emphasize the additional benefits and the danger caused by auctions. A better awareness of the procurement process enables better decisions concerning the choice of benefits which are worth pursuing.

Urbanization and Economic Networks

2018 ◽  
Author(s):  
Ryan Boehm
Keyword(s):  
Land Tenure ◽  
Institutional Economics ◽  
New Institutional Economics ◽  
Economic Effects ◽  
Economic Consequences ◽  
Urban Centers ◽  
Economic Networks ◽  
Fiscal Regimes ◽  
Fiscal Regime ◽  
The Relationship

This chapter addresses the profound economic consequences of creating new polities by merging cities, elites, and fiscal regimes into new urban centers. It argues that the Hellenistic polis functioned as a core economic node in the vast patchwork of the fiscal regimes of the Hellenistic kingdoms, shifting from the primarily village-and palace-based system of Persian rule. The chapter focuses on several interconnected spheres: the effects of urbanization on the civic economy (i.e., the polis itself and its fiscal regime), the issue of land tenure and the relationship between civic territory and royal land, and the concomitant creation of regional leagues and wider networks of exchange. The chapter considers the vexing issue of monetization and the extent to which urbanization can serve as a proxy for economic growth, relating this study to questions about premodern economies and the economic effects of empires that are important questions in other fields. Drawing on recent approaches of economic historians (in particular, the new institutional economics and more apolitical models of Mediterranean connectivity), it examines how the heavy reliance on urbanization reveals a more explicitly economic basis for Hellenistic state building than is often assumed.

Technology

2010 ◽  
pp. 123-144 ◽  
Author(s):  
Blaine G. Robbins ◽  
Maria S. Grigoryeva
Keyword(s):  
Institutional Economics ◽  
New Institutional Economics ◽  
Civic Culture ◽  
Future Research ◽  
Formal Institutions ◽  
Generalized Trust ◽  
Country Level ◽  
The World ◽  
Trust Measure ◽  
The Individual

The country-level determinants of generalized trust that usually command the most research are ethnic homogeneity, institutional performance, civic culture, and economic development. Despite the popularity and insight of this research, there is little quantitative empirical evidence that explores the impact of technology—a necessary and exogenous condition for many of these determinants—on generalized trust. In this chapter, technology measures from the World Bank are combined with a generalized trust measure from the World Values Survey and other country-level predictors from various data sources to test two competing theories of generalized trust across 57 countries. One theory, new institutional economics, argues that technology will yield formal institutions, which structure incentives and reduce uncertainty, that, in turn, increase generalized trust. The other perspective, overjustification and crowding theory, argues that actors constrained by extrinsic motivators, such as technology and institutional incentives, will attribute trust to the incentive rather than to the individual, and generalized trust, as a result, will decrease. Structural equation model results confirm the new institutional economics claim that the positive effects of technology on generalized trust are positively mediated by formal institutions. The authors conclude by outlining various managerial implications and directions for future research.

scholarly journals How Institutions Shape Uncertainty and Risk

Internext ◽  
2021 ◽  
Vol 16 (3) ◽  
pp. 238-251
Author(s):  
Stephanie Tonn Goulart Moura ◽  
Christian Daniel Falaster ◽  
Christine Elena Bianchi ◽  
Érica de Souza Mazato ◽  
Laura Taysa Espig
Keyword(s):  
Institutional Economics ◽  
Empirical Studies ◽  
Informal Institutions ◽  
Theoretical Explanation ◽  
New Institutional Economics ◽  
Primary Role ◽  
Strategic Decisions ◽  
Risk And Uncertainty ◽  
Formal And Informal Institutions ◽  
Shape Uncertainty

Purpose: The study proposes a conceptual framework on how institutions influence risk and uncertainty. Beyond the nuances in defining the concepts in the existing literature, the role of institutions in shaping risks and uncertainties remains understudied. This paper adopts the new institutional economics (NIE) perspective to revisit the concepts of risk and uncertainty and provide a deeper reflection about its interactions with formal and informal institutions. Method: Our conceptual model is based on four propositions that support a theoretical explanation about the relationships between institutions and uncertainties, institutions and risks, and uncertainties and risks. Findings: While formal institutions have a primary role in reducing uncertainties, informal institutions can be seen as a source of risk. These findings imply firms’ strategic decisions. In this regard, we also provide a research agenda for future empirical studies in the area. Originality/value: The study highlights the importance of institutions for companies to deal with risk and uncertainties. The institutions have a primary role in defining the “known part” of the uncertainty, allowing the companies to evaluate the different scenarios for decision-making. Theoretical/Methodological Contributions: This study differentiates risk and uncertainty interaction according to institutional theory. Additionally, we offer an academic discussion of how formal and informal institutions can shape risks and uncertainties.

scholarly journals About the governance pillar of agrarian sustainability

2020 ◽  
Vol 32 (4) ◽  
pp. 16-27
Author(s):  
Hrabrin Bachev
Keyword(s):  
Sustainable Development ◽  
Reference Values ◽  
Institutional Economics ◽  
New Institutional Economics ◽  
Objective Data ◽  
Business Organizations ◽  
New Governance ◽  
Critical Factors ◽  
Academic Literature ◽  
The Individual

Introduction. Most of suggested and practically used framework for assessing the agrarian sustainability include three pillars – economic, social, and environmental. In recent years a new “fourth” governance pillar of sustainability has been introduced in academic literature and appeared in official documents of governmental, international, professional and business organizations. Nevertheless, the elaboration of the approach for assessing the governance sustainability of agriculture still is at the beginning stage. This article suggests a holistic framework for assessing the new governance pillar of agrarian sustainability. Materials and methods. A framework of new evolving interdisciplinary methodologies of Sustainable Development and the New Institutional Economics has been incorporated and a holistic system comprising of well-defined principles, criteria, indicators and reference values used for assessing governance sustainability of Bulgarian agriculture at national and (sub)sectoral (industry) levels. Results. Multi-principle, multi-criteria and multi-indicators assessment indicates that the Overall Governance Sustainability of Bulgarian agriculture is at a “Good” but very close to the “Satisfactory” level. Besides, there is a considerable differentiation in the level of Integral Governance sustainability of different agro-industries in the country. What is more, the individual indicators with the highest and lowest sustainability values determine the “critical” factors enhancing and deterring the particular and integral Governance sustainability of evaluated agro-system. Conclusion. Holistic assessments of governance and overall sustainability are important for improving the management of agrarian sustainability in general, and the Governance sustainability of agriculture in particular. Therefore, they are to be expended and their precision and representation increased. The later requires improvement of the precision through enlargement of surveyed farms and stakeholders, and incorporating more “objective” data from surveys, statistics, expertise of professionals in the area, etc.

scholarly journals Mechanisms of Weak Governance in Grasslands and Wetlands of South America

2020 ◽  
Vol 12 (17) ◽  
pp. 7214
Author(s):  
Luca Eufemia ◽  
Michelle Bonatti ◽  
Stefan Sieber ◽  
Barbara Schröter ◽  
Marcos A. Lana
Keyword(s):  
Sustainable Development ◽  
Local Governments ◽  
Institutional Economics ◽  
Economic Value ◽  
Social Institutions ◽  
New Institutional Economics ◽  
Development Framework ◽  
Underlying Mechanisms ◽  
Political Economic

Weak governance is a major threat to sustainable development, especially in rural contexts and within ecosystems of great social and economic value. To understand and compare its arrangement in the grasslands and wetlands of the Colombian Llanos and the Paraguayan Pantanal, we build upon the Institutional and Development Framework (IAD) as we explore the role of political, economic, and social institutions and combine components of the theory of common-pool resources (CPR) and new institutional economics (NIE). This hybrid conceptualization provides a synthesis of how top-down hierarchical and market-based systems of community-based and natural resource management negatively affect sustainable development in both study areas. Our findings suggest three underlying mechanisms causing a situation of weak governance: centralized (economic and political) power, the role of central and local governments, and social exclusion. Understanding these multidimensional contextual mechanisms improves the understanding that institutional structures supporting arrangements that handle grasslands and wetlands in a sustainable way are needed to protect the ecosystem’s social and economic values, especially in rural and marginalized contexts.

Development, Informal Institutions and Agency Analyzed through the Lens of New Institutional Anthropology: A Modification of Ensminger’s Framework on Institutional Change

2017 ◽  
Vol 137 (1-2) ◽  
pp. 69-91
Author(s):  
Johanna Friederike Goetter
Keyword(s):  
Institutional Change ◽  
Political Institutions ◽  
Institutional Economics ◽  
Informal Institutions ◽  
New Institutional Economics ◽  
Wide Range ◽  
The Status ◽  
Specific Outcome ◽  
History Of ◽  
The Impact

In development research, much effort has gone into analyzing the impact of economic and political institutions and their adequate design. However, unforeseen factors such as the impact of the cumulative behavior of individuals as shaped by informal institutions – especially social norms and moral values – may also determine the pace and path of development. Thus, positive economic, social or political triggers may only then translate into development if the relevant actors adapt their strategies and actions appropriately. Similarly, while negative triggers may induce a deterioration of the socioeconomic situation if no adaptation or a mal-adaptation takes place, in another real-world setting with a different set of institutions and actors it may in turn be possible to preserve the status quo. Sound analytical frameworks are needed to gain a deeper understanding of the complex and dynamic interaction of factors leading to a case-specific outcome and history of change. These frameworks have to be specific enough to allow the interpretation of complex changes and dynamics and at the same time general enough to fully cover a broad range of diverse settings and all important but possibly unforeseen aspects. In this paper, I present a modified version of the Framework for Modeling Institutional Change developed by Jean Ensminger (1992). Accounting for the relationships and dynamics of incentives, formal and informal institutions, bargaining power and the constellation of actors, Ensminger’s framework, which is rooted in the theoretical approach of New Institutional Anthropology, merges important aspects from New Institutional Economics and anthropology. However, it fails to leave room for agency which, as the paper illustrates, has been shown to play an often important role in development. The modified version of Ensminger’s framework incorporates agency as a main factor. For the purpose of demonstration, it is applied to a case study on informal constraints to cope with cattle rustling in Madagascar. The paper illustrates the modified framework’s analytical strength for a meticulous investigation of a wide range of empirical cases and discusses to which development-related cases and research interests it fits best. JEL Codes: B52, O1, N57, Z13

Informal, formal institutions and credit: complements or substitutes?

2019 ◽  
Vol 15 (4) ◽  
pp. 649-671 ◽  
Author(s):  
Paula Cruz-García ◽  
Jesús Peiró-Palomino
Keyword(s):  
Social Trust ◽  
Important Determinant ◽  
Informal Institutions ◽  
Formal Institutions ◽  
Private Credit ◽  
Micro Level ◽  
Per Se ◽  
Cross Country ◽  
The Relationship

AbstractThis paper analyses the relationship between informal institutions measured by social trust and the provision of private credit. Research on the trust–finance relationship abounds, although most of it is confined to the micro-level, with far fewer contributions from a wide, cross-country perspective. Considering a sample of 119 economies in the period 1993–2015, results suggest that social trust is an important determinant of private credit, and that its effects are transmitted indirectly via some particular aspects of the quality of economic-judicial institutions. In addition, and contrary to previous findings in related areas, substitutive effects for informal and formal institutions are not found. Therefore, informal institutions can improve the quality of the certain types of formal institutions but they are, per se, unable to replace them in the provision of credit. Accordingly, a solid economic-judicial system becomes essential to guarantee credit transactions.

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