Development Economics and Economic Development: Why do Institution Matter?
Economic development is a complex phenomenon, at least when speaking about understanding its real sources, despite the simplifying tendencies of economic growth neoclassical theories. These orthodox theories limit themselves to identifying the necessary conditions - such as capital accumulation and...
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| Format: | Article |
| Language: | English |
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General Association of Economists from Romania
2007-02-01
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| Series: | Theoretical and Applied Economics |
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| Online Access: | http://www.ectap.ro/articole/198.pdf |
| _version_ | 1818547980133728256 |
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| author | Cosmin Marinescu |
| author_facet | Cosmin Marinescu |
| author_sort | Cosmin Marinescu |
| collection | DOAJ |
| description | Economic development is a complex phenomenon, at least when speaking about understanding its real sources, despite the simplifying tendencies of economic growth neoclassical theories. These orthodox theories limit themselves to identifying the necessary conditions - such as capital accumulation and technological progress - for production increasing. But, in order to explain "why" people are saving, investing, learning and looking for knowledge, we must take into consideration the institutions that define any economic system. Within society, people are perceptive to a system of general rules that provides incentives and constraints for human behavior. Institutions' and human action's mutuality, and also its economic and political implications, explain the essential importance of institutions in economic science and the institutional approach viability. |
| first_indexed | 2024-12-12T08:13:52Z |
| format | Article |
| id | doaj.art-bbcdd7fa557b4dab9681b0645972ed69 |
| institution | Directory Open Access Journal |
| issn | 1841-8678 |
| language | English |
| last_indexed | 2024-12-12T08:13:52Z |
| publishDate | 2007-02-01 |
| publisher | General Association of Economists from Romania |
| record_format | Article |
| series | Theoretical and Applied Economics |
| spelling | doaj.art-bbcdd7fa557b4dab9681b0645972ed692022-12-22T00:31:40ZengGeneral Association of Economists from RomaniaTheoretical and Applied Economics1841-86782007-02-012(507)2(507)93112Development Economics and Economic Development: Why do Institution Matter?Cosmin MarinescuEconomic development is a complex phenomenon, at least when speaking about understanding its real sources, despite the simplifying tendencies of economic growth neoclassical theories. These orthodox theories limit themselves to identifying the necessary conditions - such as capital accumulation and technological progress - for production increasing. But, in order to explain "why" people are saving, investing, learning and looking for knowledge, we must take into consideration the institutions that define any economic system. Within society, people are perceptive to a system of general rules that provides incentives and constraints for human behavior. Institutions' and human action's mutuality, and also its economic and political implications, explain the essential importance of institutions in economic science and the institutional approach viability.http://www.ectap.ro/articole/198.pdfinstitutionsdevelopment economicsproperty rightseconomic development |
| spellingShingle | Cosmin Marinescu Development Economics and Economic Development: Why do Institution Matter? Theoretical and Applied Economics institutions development economics property rights economic development |
| title | Development Economics and Economic Development: Why do Institution Matter? |
| title_full | Development Economics and Economic Development: Why do Institution Matter? |
| title_fullStr | Development Economics and Economic Development: Why do Institution Matter? |
| title_full_unstemmed | Development Economics and Economic Development: Why do Institution Matter? |
| title_short | Development Economics and Economic Development: Why do Institution Matter? |
| title_sort | development economics and economic development why do institution matter |
| topic | institutions development economics property rights economic development |
| url | http://www.ectap.ro/articole/198.pdf |
| work_keys_str_mv | AT cosminmarinescu developmenteconomicsandeconomicdevelopmentwhydoinstitutionmatter |