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The Process of Economic Change

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  • Douglass C. North

Abstract

A good deal is known about what makes for successful economic development, but very little is known about how to get there - that entails an understanding of the process of economic change. The paper first examines the sources of successful growth and then explores the process of dynamic change of economies. As to sources of growth, three fundamental factors are discussed: basic economic determinants, the institutional framework and the cultural heritage of society. The main force underlying dynamic economic change is the continuous interaction between institutions and organizations.

Suggested Citation

  • Douglass C. North, 1997. "The Process of Economic Change," WIDER Working Paper Series wp-1997-128, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-1997-128
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    File URL: https://www.wider.unu.edu/sites/default/files/WP128.pdf
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    2. Alberto Battistini, 2007. "Surplus-Value, Distribution and Exploitation," Department of Economics University of Siena 518, Department of Economics, University of Siena.
    3. Leisen Fabrizio & Mira Antonietta, 2006. "Coalescence time and second largest eigenvalue modulus in the monotone reversible case," Economics and Quantitative Methods qf06011, Department of Economics, University of Insubria.
    4. Khalil, Elias, 2007. "The Mirror-Neuron Paradox: How Far is Sympathy from Compassion, Indulgence, and Adulation?," MPRA Paper 3509, University Library of Munich, Germany.
    5. Fine, B., 2000. "Bringing the Social Back into Economies: Progress or Reductionism?," Department of Economics - Working Papers Series 731, The University of Melbourne.
    6. Zhao, Liang & Zhu, Xian Chen, 2007. "A Discussion on Empirical Micro-Bases of Hayek’s Methodological Individualism," MPRA Paper 3862, University Library of Munich, Germany.
    7. Shilpi Kapur & Sukkoo Kim, 2006. "British Colonial Institutions and Economic Development in India," NBER Working Papers 12613, National Bureau of Economic Research, Inc.
    8. Rastoin, J.L., 2006. "Le système alimentaire mondial est-il soluble dans le développement durable ?," Working Papers MoISA 200605, UMR MoISA : Montpellier Interdisciplinary center on Sustainable Agri-food systems (social and nutritional sciences): CIHEAM-IAMM, CIRAD, INRAE, L'Institut Agro, Montpellier SupAgro, IRD - Montpellier, France.
    9. Gonzalo Caballero & Christopher Kingston, 2005. "Cambio cultural, dinámica institucional y ciencia cognitiva: hacia una comprensión multidisciplinaria del desarrollo económico," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 7(13), pages 327-335, July-Dece.
    10. Robert Ciborowski, 2014. "Innovation Process Adjusting In Peripheral Regions. The Case Of Podlaskie Voivodship," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 9(2), pages 57-72, June.
    11. Edwards, Sebastian & Garcia Marin, Alvaro, 2015. "Constitutional rights and education: An international comparative study," Journal of Comparative Economics, Elsevier, vol. 43(4), pages 938-955.
    12. François Facchini, 2011. "Economic freedom in Muslim countries : an explanation using the theory of institutional path dependency," Post-Print halshs-00587694, HAL.
    13. Ashima Goyal, 2005. "Making the Politician and the Bureaucrat Deliver - Employment Guarantee in India," Labor Economics Working Papers 22364, East Asian Bureau of Economic Research.
    14. Douglass C. North & John Joseph Wallis & Barry R. Weingast, 2006. "A Conceptual Framework for Interpreting Recorded Human History," NBER Working Papers 12795, National Bureau of Economic Research, Inc.
    15. Carmen Richerzhagen, 2014. "The Nagoya Protocol: Fragmentation or Consolidation?," Resources, MDPI, vol. 3(1), pages 1-17, February.
    16. Antonelli Cristiano, 2012. "The foundations of a slow growth economy: globalization and induced technological change towards a knowledge economy," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201204, University of Turin.
    17. François Facchini, 2013. "Economic freedom in Muslim countries: an explanation using the theory of institutional path dependency," European Journal of Law and Economics, Springer, vol. 36(1), pages 139-167, August.
    18. Andros Kourtellos, 2002. "Modeling Parameter Heterogeneity in Cross Country Growth Regression Models," University of Cyprus Working Papers in Economics 0212, University of Cyprus Department of Economics.
    19. Sophia du Plessis, 2007. "Democracy and the feedback mechanism in Botswana," Working Papers 10/2007, Stellenbosch University, Department of Economics.
    20. Germán Burgos, 2006. "Instituciones jurídicas y crecimiento económico: la experiencia asiática," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 8(14), pages 137-166, January-J.
    21. Teodor Sedlarski, 2009. "Transaction Costs in the Course of the System Transformation in Bulgaria," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 35-55.

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    More about this item

    Keywords

    Economic development; Economic growth; Institutional economics; Technological innovations; Research (Technological innovations);
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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