Global Governance and Economic Development

Type :

Case study

Pages :

11 pages

Format :

.pdf

Published date :

02/07/2008

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Summary :

 
 

Table of Contents Global Governance and Economic Development Table of Contents

 
  1. New institutional economics
  2. Case study: Eastern europe
  3. Social capital theory
  4. Case study: El Salvador
  5. New growth theory
  6. Case study: The Asian miracle
  7. Conclusion
  8. Works cited

Abstract

According to common perception among economists, the idea of institutional economics started with Ronald Coarse's article, "The Nature of the Firm" (1937) where the concepts of transaction costs and economic analysis were first introduced (Coarse, 1998, p. 71). Since then, the field of New Institutional Economics (NIE) has come a long way and attracted more and more prominent economists such as Oliver Williamson, Douglas North, Harold Demsetz, and Steven Cheung as well an extensive array of representatives of various other social sciences such as law, political science, sociology and anthropology. The need for a "new" way of thinking about economics is what Oliver Williamson expressed by coining the phrase "new institutional economics" in an attempt to distinguish the subject from "old institutional economics". The latter, as Coarse states was "anti-theoretical" and without a theoretical background to explain facts, the economists belonging to the "old" school of institutional economics were unable to bring the field to the forefront of economic analysis (1998, p. 72). Hence, important conclusions about the role of institutions, their origins, development and functioning, were slow to enter mainstream economics, which according to the proponents of NIE, has a general disregard for the working of real economies but rather focuses on the hypothetical situations (Coarse, 1998, p. 72).

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About the author :

pencil image Donika D. Results for Development Institute
Level :Advanced Study : International relations School/University : Syracuse University

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