IDEAS home Printed from https://ideas.repec.org/a/cpn/umkeip/v18y2019i1p61-72.html
   My bibliography  Save this article

On the validity of the division into formal and informal institutions

Author

Listed:
  • Izabela Ostoj

    (University of Economics in Katowice)

Abstract

Motivation: Definitions and classifications constitute the most important elements of each theory. The division of institutions into formal and informal is commonly applied within new institutional economics. In his papers devoted to institution measurement S. Voigt developed the division of institutions into internal and external, argued its functionality and, to a certain extent, its superiority. Aim: The aim of this paper is to investigate and assess the validity and applicability of the division of institutions into formal and informal from the perspective of the analysis of social and economic phenomena. Results: Based on literature, as well as drawing on the origins of the institution classification and referenced examples, it was proved that the division into formal and informal institutions is not only at least equally precise as other classifications, but it is also consistent and logical, which determines its high usefulness in scientific research.

Suggested Citation

  • Izabela Ostoj, 2019. "On the validity of the division into formal and informal institutions," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 18(1), pages 61-72, March.
    • Handle: RePEc:cpn:umkeip:v:18:y:2019:i:1:p:61-72
    DOI: 10.12775/EiP.2019.005
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.12775/EiP.2019.005
    Download Restriction: no
    File URL: https://libkey.io/10.12775/EiP.2019.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mehmet Karaçuka, 2018. "Religion and Economic Development in History: Institutions and the Role of Religious Networks," Journal of Economic Issues, Taylor & Francis Journals, vol. 52(1), pages 57-79, January.
    2. Stefan Voigt, 2012. "How to Measure the Rule of Law," Kyklos, Wiley Blackwell, vol. 65(2), pages 262-284, May.
    3. Greif, Avner & Mokyr, Joel, 2017. "Cognitive rules, institutions, and economic growth: Douglass North and beyond," Journal of Institutional Economics, Cambridge University Press, vol. 13(1), pages 25-52, March.
    4. Voigt, Stefan, 2013. "How (not) to measure institutions: a reply to Robinson and Shirley," Journal of Institutional Economics, Cambridge University Press, vol. 9(1), pages 35-37, March.
    5. Osei-Tutu, Paul, 2017. "Taboos as informal institutions of local resource management in Ghana: Why they are complied with or not," Forest Policy and Economics, Elsevier, vol. 85(P1), pages 114-123.
    6. Seidler, Valentin, 2018. "Copying informal institutions: the role of British colonial officers during the decolonization of British Africa," Journal of Institutional Economics, Cambridge University Press, vol. 14(2), pages 289-312, April.
    7. Voigt, Stefan, 2018. "How to measure informal institutions," Journal of Institutional Economics, Cambridge University Press, vol. 14(1), pages 1-22, February.
    8. Khalid Sekkat & Pierre-Guillaume Méon, 2015. "The formal and informal institutional framework of capital accumulation," Post-Print CEB, ULB -- Universite Libre de Bruxelles, August.
    9. Voigt, Stefan, 2013. "How (Not) to measure institutions," Journal of Institutional Economics, Cambridge University Press, vol. 9(1), pages 1-26, March.
    10. William H. Redmond, 2008. "Formal Institutions in Historical Perspective," Journal of Economic Issues, Taylor & Francis Journals, vol. 42(2), pages 569-576, June.
    11. G. Hodgson, 2007. "What Are Institutions?," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 8.
    12. Shirley, Mary M., 2013. "Measuring institutions: how to be precise though vague," Journal of Institutional Economics, Cambridge University Press, vol. 9(1), pages 31-33, March.
    13. Hodgson, Geoffrey M., 2015. "On defining institutions: rules versus equilibria," Journal of Institutional Economics, Cambridge University Press, vol. 11(3), pages 497-505, September.
    14. Hicks, J. R., 1969. "A Theory of Economic History," OUP Catalogue, Oxford University Press, number 9780198811633, Decembrie.
    15. Naraparaju, Karthikeya, 2016. "Impediments to contract enforcement in day labour markets: a perspective from India," Journal of Institutional Economics, Cambridge University Press, vol. 12(3), pages 651-676, September.
    16. Cole, Daniel H., 2017. "Laws, norms, and the Institutional Analysis and Development framework," Journal of Institutional Economics, Cambridge University Press, vol. 13(4), pages 829-847, December.
    17. Douglass C. North, 2005. "Introduction to Understanding the Process of Economic Change," Introductory Chapters, in: Understanding the Process of Economic Change, Princeton University Press.
    18. Marcesse, Thibaud, 2018. "Public Policy Reform and Informal Institutions: The Political Articulation of the Demand for Work in Rural India," World Development, Elsevier, vol. 103(C), pages 284-296.
    19. Claudia Williamson, 2009. "Informal institutions rule: institutional arrangements and economic performance," Public Choice, Springer, vol. 139(3), pages 371-387, June.
    20. Svetozar Pejovich & Enrico Colombatto, 2008. "Law, Informal Rules and Economic Performance," Books, Edward Elgar Publishing, number 4198.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jacek Lewkowicz & Katarzyna Metelska-Szaniawska, 2016. "De jure and de facto institutions – disentangling the interrelationships," Working Papers 2016-29, Faculty of Economic Sciences, University of Warsaw.
    2. Papageorgiadis, Nikolaos & McDonald, Frank & Wang, Chengang & Konara, Palitha, 2020. "The characteristics of intellectual property rights regimes: How formal and informal institutions affect outward FDI location," International Business Review, Elsevier, vol. 29(1).
    3. Amendolagine, Vito & von Jacobi, Nadia, 2023. "Symbiotic relationships among formal and informal institutions: Comparing five Brazilian cultural ecosystems," Economic Systems, Elsevier, vol. 47(3).
    4. Gutmann, Jerg & Voigt, Stefan, 2020. "Traditional law in times of the nation state: why is it so prevalent?," Journal of Institutional Economics, Cambridge University Press, vol. 16(4), pages 445-461, August.
    5. Papageorgiadis, Nikolaos & McDonald, Frank, 2019. "Defining and Measuring the Institutional Context of National Intellectual Property Systems in a post-TRIPS world," Journal of International Management, Elsevier, vol. 25(1), pages 3-18.
    6. ROUGIER Eric, 2015. ""The parts and the whole”: Unbundling and re-bundling institutional systems and their effect on economic development," Cahiers du GREThA (2007-2019) 2015-12, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    7. Frolov, Daniil, 2019. "The manifesto of post-institutionalism: institutional complexity research agenda," MPRA Paper 97662, University Library of Munich, Germany.
    8. Sarela Enriquez-Perales & Conrado Diego García-Gómez & José María Díez-Esteban & Edmundo R. Lizarzaburu Bolaños, 2023. "Formal institutions, ICSID arbitration and firm performance: evidence from Latin America," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(2), pages 429-464, June.
    9. Frolov, Daniil, 2019. "Постинституционализм: Программа Исследований За Пределами Институционального Мейнстрима [Post-institutionalism: research program beyond the institutional mainstream]," MPRA Paper 92328, University Library of Munich, Germany.
    10. Luis Alfonso Dau & Aya S. Chacar & Marjorie A. Lyles & Jiatao Li, 2022. "Informal institutions and international business: Toward an integrative research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 985-1010, August.
    11. Simon Hartmann & Thomas Lindner & Jakob Müllner & Jonas Puck, 2022. "Beyond the nation-state: Anchoring supranational institutions in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 1282-1306, August.
    12. Aparicio, Sebastian & Audretsch, David & Noguera, Maria & Urbano, David, 2022. "Can female entrepreneurs boost social mobility in developing countries? An institutional analysis," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    13. Gutmann, Jerg & Voigt, Stefan, 2018. "The rule of law: Measurement and deep roots," European Journal of Political Economy, Elsevier, vol. 54(C), pages 68-82.
    14. Peter Foldvari, 2017. "De Facto Versus de Jure Political Institutions in the Long-Run: A Multivariate Analysis, 1820–2000," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(2), pages 759-777, January.
    15. Kristin Brandl & Elizabeth Moore & Camille Meyer & Jonathan Doh, 2022. "The impact of multinational enterprises on community informal institutions and rural poverty," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 1133-1152, August.
    16. Scott Beaulier & Robert Elder & Cheryl Han & Joshua C. Hall, 2016. "An ordinal ranking of economic institutions," Applied Economics, Taylor & Francis Journals, vol. 48(26), pages 2482-2490, June.
    17. Skarbek, David, 2020. "Qualitative research methods for institutional analysis," Journal of Institutional Economics, Cambridge University Press, vol. 16(4), pages 409-422, August.
    18. Masahiko Aoki, 2013. "Endogenizing institutions and institutional changes," Chapters, in: Comparative Institutional Analysis, chapter 16, pages 267-297, Edward Elgar Publishing.
    19. Seidler, Valentin, 2014. "When do institutional transfers work? The relation between institutions, culture and the transplant effect: the case of Borno in north-eastern Nigeria," Journal of Institutional Economics, Cambridge University Press, vol. 10(3), pages 371-397, September.
    20. Judit Kozenkow, 2013. "New institutional economics: Foundations and latest trends," Society and Economy, Akadémiai Kiadó, Hungary, vol. 35(1), pages 87-101, April.

    More about this item

    Keywords

    institutions; formal institutions; informal institutions; legal origin;
    All these keywords.

    JEL classification:

    • B5 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpn:umkeip:v:18:y:2019:i:1:p:61-72. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Miroslawa Buczynska (email available below). General contact details of provider: http://www.wydawnictwoumk.pl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.