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Institutional Dynamics As A Determinant Of Economic Development - With Reference To China -

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  • Ljubomir Madžar

    (Institute of Strategic Studies and Development of the Alfa University)

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    Abstract

    lt has for quite some time now been recognized that the rhythm and strategic directions of economic development cannot be explained by resource availability as the latter is not a precondition of economic de- velopment but rather its result. Thus institutions have been carefully examined as the nexus of determining forces, together with political and broader social factors affecting perceptively institutional evolution. lt soon transpired that another closely related dynamic force plays a si- gnificant role in determining the development trajectories. That force is the institutional change which affects directly the resource flows and dynamic tendencies and at the same time mightily motivates economic agents with strong effects on both mobilization and allocation of re- sources as a predictable consequence. The proposed theory is illustra- ted and preliminarily tested on the example of China.

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    Bibliographic Info

    Article provided by SAE - Serbian Association of Economists in its journal SAE Journal.

    Volume (Year): (2013)
    Issue (Month): 3-4 (April)
    Pages: 163-173

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    Handle: RePEc:srb:journl:y:2013:i:3-4:p:163-173

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    Related research

    Keywords: economic development; resource endowment; insti- tutions; institutional change as a growth factor; political and so- cial constraints on institutions; China;

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