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Institutional change in context of economic orders modernization

русская версия

Опубликовано на портале: 16-02-2014
Тематический раздел:
Economic policy of modernization aims at reducing the differences in the economic development between countries. Economic development and institutions are interdependent; on the one hand, existence of high-quality institutions results in economic growth, but, on the other hand, achieved level of well-being can lead to accumulation of human and social capital which are able to create the foundations for the modern institutions. Institutions and technologies are considered in the historical context of its evolution. The actions of special interest groups, prevalence of the ceremonial values, lock-in on the inefficient institutions caused by path-dependency are the obstacles to economic modernization. Economic policy of modernization favors economic development if there is a consensus among the elites about the purposes and methods of its implementation in accordance with national features of the evolution of institutions.
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