Development Centre Studies Institutional Efficiency and its Determinants The Role of Political Factors in Economic Growth: The Role of Political Factors in Economic Growth
Bodmer Frank · Borner Silvio · Kobler Markus
Feb 2004 · OECD Publishing
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New Institutional Economics (NIE) takes a multidisciplinary approach to understanding economic phenomena like growth, efficiency and income distribution. The authors of this book attempt to provide an integrated methodology, hitherto lacking in NIE, that analyses both the impact of institutions on economic development and the determinants that shape institutional quality. Using the case of Argentina, they use the analytical framework developed and explained in the book to test their theoretical hypotheses. They find that their concept of institutional quality and their delineation between economic and political institutions work in practice. In addition, their consideration of particular institutions – democracy and autocracy – and their reflections on the impact of “traditional” legal and cultural frameworks add a dimension to the book that gives it a controversial, but stimulating timeliness.
At a time when national governments and international institutions are seeking ways to improve governance and accelerate growth, particularly in the poorer countries, this book provides valuable insights for policy makers and those who advise them. It offers convincing evidence about the quality of institutions as a determining factor in development and suggests how such quality might be improved.
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