The Institutional Foundation Of Economic Development

A systemic account of how institutions shape economic development Institutions matter for economic development. Yet despite this accepted wisdom, new institutional economics (NIE) has yet to provide a comprehensive look at what constitutes the institutional foundation of economic development (IFED). Bringing together findings from a range a fields, from development economics and development studies to political science and sociology, The Institutional Foundation of Economic Development explores the precise mechanisms through which institutions affect growth. Shiping Tang contends that institutions shape economic development through four “Big Things”: possibility, incentive, capability, and opportunity. From this perspective, IFED has six major dimensions: political hierarchy, property rights, social mobility, redistribution, innovation protection, and equal opportunity. Tang further argues that IFED is only one pillar within the New Development Triangle (NDT): sustained economic development also requires strong state capacity and sound socioeconomic policies. Arguing for an evolutionary approach tied to a country’s stage of development, The Institutional Foundation of Economic Development advances an understanding of institutions and economic development through a holistic, interdisciplinary lens.

K. William Kapp was one of the leading 20 th century institutionalists and a founding member of the Association for Evolutionary Economics. This book was developed by Kapp and is his attempt to present the foundations of institutional economics though has remained unfinished and unpublished during the last 30 years since his death. Carefully edited with additional material from some of Kapp' s other major works and with a full introduction from Sebasitan Berger and Rolf Steppacher, this book represents a major reappraisal of Kapp' s contribution ...

This is a ground-breaking book about the foundations of institutional economics. K. William Kapp presents the economic role of institutions for economic development, capital formation and technological dynamics in an easily accessible and comprehensive manner. As a front-rank 20th century institutional economist, Kapp pulls together arguments from a variety of sources, including Thorstein Veblen, John Kenneth Galbraith and Gunnar Myrdal, all of which emphasize the crucial role of institutions. The author cements institutional economics as a distinct and coherent framework of analysis to effectively address urgent socio-economic problems, such as environmental disruption and sustainable development. This book begins with a critique of conventional (neoclassical) economics and an overview of the antecedents of institutional economics. The core of the book is formed by the chapters on institutions, human economic behavior and needs, arguing that institutional change is key to directing economic development towards sustainable and adequate living conditions, rather than merely formal growth formulas. The final chapters provide the reader with the institutional theories of capital and technology, showing how capital formation and technological dynamics are determined by institutions, such as the principle of investment for profit. The appendix complements Kapp’s plea for institutional change with articles on science and technology, social costs, substantive economics, and circular and cumulative causation. This book is suited for readers at all levels who are interested in institutional economics, the history of economics thought, political economics as well as ecological and heterodox economics. Researchers and students will find it to be an easily accessible and a concise elaboration on the foundations of institutional economics.

This well-written book is the first to deal with entrepreneurship in all its aspects. It considers the economic, psychological, political, legal and cultural dimensions of entrepreneurship from a market-process perspective. David A Harper has produced a volume that analyses why some people are quicker than others in discovering profit opportunities. Importantly, the book also covers the issue of how cultural value systems orient entrepreneurial vision and, in contrast to conventional wisdom, the book argues that individualist cultural values are not categorically superior to group oriented values in terms of their consequences for entrepreneurial discovery.

"The essential role institutions play in understanding economic development has long been recognised and has been closely studied across the social sciences but some of the most high profile work has been done by economists many of whom are included in this collection covering a wide range of topics including the relationship between institutions and growth, educational systems, the role of the media and the intersection between traditional systems of patronage and political institutions. Each chapter covers the frontier research in its area and points to new areas of research and is the product of extensive workshopping and editing. The editors have also written an excellent introduction which brings together the key themes of the handbook. The list of contributors is stellar (Steven Durlauf, Throsten Beck, Bob Allen,and includes a diverse mix of Western and non Western, male and female scholars)"

A major contribution to an area of debate still in its formative phase. It offers new perspectives on both the micro-foundations of economics and the long run dynamics of economic development.

This book series presents new achievements in the scientific thought of the 21st century in the spheres of management, economics, and law, aimed at enhancing the potential of the global economic system's development in modern economic conditions and providing solutions to the complex problems it faces. The books in this series will have a wide international outlook with a focus on both macro and micro issues, placing emphasis on a wide range of global, regional and national threats and opportunities for economic sectors and systems. By unifying the scholarly efforts of academics from adjacent spheres of socio-humanitarian sciences (management, economics, and law), the series will allow for coverage of a plethora of organizational and managerial, financial and economic, and normative and legal issues and present multi-disciplinary approaches and original solutions to the pressing problems of modern economic theory and practice. Series editors Elena G. Popkova is a Professor at the Institute of Scientific Communications, Volgograd, Russia where she teaches courses in economic development, world economy and international economic relationships. She is a very active researcher with 93 publications listed in Scopus and is a member of the editorial boards of 3 different journals and has been guest editor of 4 journal publications. She is an active participant in leading international forums and conferences. Artem Krivtsov is a Professor at Samara State University of Economics, Samara, Russia. He is the author of more than 80 important scientific works and is indexed in the systems of scientific citation and published in high-ranking scientific journals. Research topics being developed are investment analysis and enterprise management. Through his work, Artem popularises and promotes science as well as scientific knowledge and achievements. He also increases the degree of integration of science and education and effectively realizes the innovative potential of basic science.

'. . . this volume is an excellent resource for those interested in the analysis of institutions' design and economic development. . .' - Oscar Alfranca, Progress in Development Studies The main theme of this study is the political economy of policy reform in less developed countries and post-socialist countries. Given the complexity of economic development and transition, Joachim Ahrens views failures in policy reform, poor public sector management, rent-seeking, corruption, and over-centralization as systematic, though not exclusive, instances of institutional failure.

Applying the new economics of organisation and relational theories of the firm to the problem of understanding cross-national variation in the political economy, this volume elaborates a new understanding of the institutional differences that characterise the 'varieties of capitalism' worldwide.