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.

8. The Political Economy of Democracy

2018 ◽  
pp. 119-133
Author(s):  
Patrick Bernhagen
Keyword(s):  
Political Economy ◽  
Property Rights ◽  
Economic Reforms ◽  
Transition To Democracy ◽  
The Political ◽  
Historical Overview ◽  
Personal Rights ◽  
Key Points ◽  
The Relationship

This chapter examines the relationship between democratization and the economy. It first provides an historical overview of the emergence of capitalist democracy before discussing some general problems of the relationship between democracy and capitalism, highlighting the main areas in which the two systems condition each other. It then considers the role of business in democratizing countries, and more specifically the role of business actors in the transition to democracy. It also explores the intricacies of combining major political and economic reforms. Some key points are emphasized; for example, capitalism focuses on property rights while democracy focuses on personal rights. Furthermore, capitalism produces inequality, which can both stimulate and hamper democratization.

Transformation of the State and Political Economy of the Governance

2020 ◽  
pp. 239-257
Author(s):  
Emek Yıldırım
Keyword(s):  
Political Economy ◽  
Public Administration ◽  
Institutional Economics ◽  
New Institutional Economics ◽  
The State ◽  
State Model ◽  
Functional Changes ◽  
The Public ◽  
Role Of The State

By the 1980s and 1990s, neoliberal policies such as privatizations and deregulations transforming the minimal state model to regulative state model from the Keynesian social welfare state system made some structural and functional changes in the state mechanism, and the public administration has been in the first place due to the changing relationship between the state and the market. In fact, within this context, the new institutional economics (NIE) had a remarkable influence upon the debates upon the altering role of the state. Hence, the transformation of the state in this regard also revealed the argumentations on the governance paradigm along with the doctrinaire contributions of the new institutional economics. Therefore, this chapter will discuss the transformation of the state and the political economy of the governance together with a critical assessment of the new institutional economics in the public administration.

Political Theory and Political Economy

2009 ◽  
Author(s):  
Stephen L. Elkin
Keyword(s):  
Economic Growth ◽  
Political Economy ◽  
Political Theory ◽  
Political Life ◽  
The Political ◽  
Distribution Of Wealth ◽  
Contemporary World ◽  
The Core ◽  
Democratic Societies

This article describes the connection between political theory and political economy. It argues that political theorists need to take account of political economy in theorizing about the contemporary world because capitalism is the most powerful force at work in shaping the modern sociopolitical world. It also explains that economic questions concerning economic growth, the distribution of wealth and income, and role of markets are at the core of the political life in democratic societies.

Political Settlements and Immiserizing Growth Episodes

2019 ◽  
pp. 85-105 ◽  
Author(s):  
Kunal Sen
Keyword(s):  
Economic Growth ◽  
Political Economy ◽  
Developing Countries ◽  
High Growth ◽  
The Political ◽  
Poor Growth ◽  
Distribution Of Power ◽  
The Relationship ◽  
Growth Deceleration ◽  
Political Settlement

Economic growth in developing countries is an ‘episodic’ phenomenon, with countries undertaking discrete shifts from periods of low to periods of high growth and vice versa. Not all growth acceleration episodes lead to reductions in poverty, and there is wide variation in the relationship between growth and poverty across episodes of growth of the same magnitude or duration. This chapter shows that several cases of growth acceleration episodes may be defined as episodes of immiserizing growth, in that poverty either increases or remains roughly the same across the duration of these episodes. Similarly, the chapter shows that not all growth deceleration episodes lead to increases in poverty. A political economy explanation is presented for episodes of immiserizing growth, focusing on the nature of the political settlement, and in particular on the distribution of power. We find that settlements with dispersed vertical power can lessen the likelihood of immiserizing growth episodes. We also find that dispersed horizontal power is not necessarily conducive to pro-poor growth episodes.

Thwarted Comparative Advantage, Economic Policy and Industrialization in the Dominican Republic and Trinidad and Tobago

1989 ◽  
Vol 31 (1-2) ◽  
pp. 147-168
Author(s):  
Francisco E. Thoumi
Keyword(s):  
Economic Growth ◽  
Political Economy ◽  
Economic Policy ◽  
Trinidad And Tobago ◽  
Government Policies ◽  
The Political ◽  
Large Fluctuations ◽  
External Sector ◽  
Relative Profitability

Economic growth and government policies in small Caribbean countries have been conditioned (1) by the very large fluctuations in their external sector which continuously change the relative profitability of the various productive sectors of their economies, greatly complicating the macroeconomics management of their economies; (2) by the attempts of their governments to cope with those fluctuations; and (3) by the political economy relations that prevail in those countries, and that determine the nature of government intervention and the role of the private sector.

New Institutional Economics and Economic Development

2021 ◽  
pp. 27-40
Author(s):  
Manolis Manioudis ◽  
Giorgos Meramveliotakis
Keyword(s):  
Economic Development ◽  
Property Rights ◽  
Transaction Costs ◽  
Political Discourse ◽  
Power Relations ◽  
Institutional Economics ◽  
New Institutional Economics ◽  
Institutional Framework

In recent years, the concept of “institutions” has become central in scientific and political discourse. This reflects an increasing awareness of the role of institutions in the functioning of economies and in economic development more generally. Many of the catchphrases articulated within new institutional economics such as “institutions,” “organisations,” “transaction costs,” “property rights,” and “contracts” have become very common in orthodox economics discourse. This development is intellectually stimulating and interesting because it raises some fundamental issues with regard to the role and functioning of institutions. These concepts are seated on Smith's idea of the “harmony of interests.” However, Smith sees power as dominant in the formation of institutional framework. This chapter aims to provide a Smithian critique based on the notion of power, arguing that the formation of institutions and institutional framework cannot be considered apart from the intrinsic power relations which are vested in society.

The political economy of property rights in monarchical Iraq: the quest for land reform 1944–1958

2019 ◽  
Vol 15 (5) ◽  
pp. 915-931
Author(s):  
Omar A. M. El-Joumayle ◽  
Bassam Yousif
Keyword(s):  
Political Economy ◽  
Property Rights ◽  
Land Reform ◽  
Arable Land ◽  
Qualitative Change ◽  
The Political ◽  
Political Market ◽  
Puzzle Solving ◽  
Increasing Demand

AbstractThis article explores the challenges of redefining property rights for land, with application to monarchical Iraq from 1944 to 1958. We apply two processes in the analysis of economic institutions to study history: a puzzle-solving method at the micro level, with broader interest in the role of institutions in development and economic growth at the macro level. Thus, we explore the interaction between demanders and suppliers of land reform in the political market, focusing on the parliamentary influence of big landholders as an interest group. We conclude that despite increasing demand for land reform, politicians were able to supply quantitative change only, consisting of the allocation of newly arable land to landless cultivators, rather than the redistribution of existing assets or qualitative change. We analyse these findings in relation to our concern for the role of institutions in development. Our discussion uncovers key insights into Iraq's political economy and its institutions.

scholarly journals Institutional Environment and Green Economic Growth in China

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-10
Author(s):  
Xiaoxiao Zhou ◽  
Lu Wang ◽  
Juntao Du
Keyword(s):  
Economic Growth ◽  
Method Of Moments ◽  
Institutional Economics ◽  
Institutional Environment ◽  
Generalized Method Of Moments ◽  
Econometric Models ◽  
New Institutional Economics ◽  
Three Dimensions ◽  
Green Growth

As the answer to sustainability concerns, green economic growth has gradually attracted considerable attention. Notably, the optimization of the institutional environment contributes to green economic growth from the perspective of new institutional economics. However, few studies have systematically explained the connection between the institutional environment and green growth. In this study, the institutional environment was divided into three dimensions: governmental, legal, and cultural subenvironments. We adopted econometric models with the effect of every dimension on green growth and empirically analyzed with the generalized method of moments, based on Chinese provincial panel data from the years 2000–2016. The results indicated that there was an inverted U-shaped relationship between China’s institutional environment and its green growth. That is, the institutional environment can initially promote China’s green growth but, if it is not changed, will eventually inhibit it. In addition, the analysis on the three dimensions of the institutional environment highlighted that the role of the cultural subenvironment in green growth is greater than those of the governmental and legal subenvironments.

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