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Institutions and development: the primacy of microanalysis




In recent years, there have been major advances in the empirical analysis of the link between institutions and development. However, a number of methodological problems – both theoretical and empirical – remain unresolved and have been well articulated by Ha-Joon Chang in his article ‘Institutions and Economic Development: Theory, Policy and History’. These problems raise valid concerns about the policy relevance of the evidence arising from the studies. A more reliable approach to study the link between institutions and development and overcome the inherent problems of cross-country empirical analysis is to direct focus to microeconomic analysis of institutions. Such an approach avoids ideologically driven normative judgments about the superiority of particular institutional arrangements and also offers a more credible and tractable avenue to investigate institutional change.

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  • Kimenyi, Mwangi S., 2011. "Institutions and development: the primacy of microanalysis," Journal of Institutional Economics, Cambridge University Press, vol. 7(04), pages 549-553, December.
  • Handle: RePEc:cup:jinsec:v:7:y:2011:i:04:p:549-553_00

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