The Institutional Foundation of Economic Development

Description

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. Cover Contents List of Illustrations Abbreviations Preface Introduction: Institutions Matter? 1. Laying the Groundwork: What Do We Know about IFED? 2. A Systematic Statement of IFED Excursion: Three Inequalities 3. The Positional Market and Development: Social Mobility as an Incentive 4. Redistribution and Development: Good Redistribution as Empowerment 5. Hierarchy, Liberty, and Innovation: A New Institutional Theory and Qualitative Evidence 6. Democracy’s Unique Advantage in Promoting Development: Quantitative Evidence 7. Development as a Social Evolutionary Process 8. The New Development Triangle: State Capacity, Institutional Foundation, and Socioeconomic Policy Conclusion: Laying the Foundation for Development Appendixes Notes Bibliography Index