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The Relationship Between Inclusive Institutions, Proximate Causes of Growth, and Economic Growth: A Case Study of the Four Mandate Territories of Lebanon, Palestine, Syria, and Trans-Jordan, 1918-1946/1948

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  • Andrew Schein

Abstract

I present a comparative historical study of the economic growth in the four mandate territories of Lebanon, Palestine, Syria, and Trans-Jordan. In all four areas, the ruling western powers, Britain and France, attempted to introduce inclusive economic institutions with a strong emphasis on private property. These institutions advanced economic growth in all four regions, but there were differences in their growth rates. For example, Palestine had the best growth, even though the British were more successful in instituting inclusive institutions in Trans-Jordan. In Palestine, there was also a huge increase in the proximate causes of growth that did not happen in Trans-Jordan. The paper suggests a refined formulation of the relationship between inclusive institutions, proximate causes of growth, and economic growth. Inclusive institutions will generate economic growth, but at a slower pace. If a country is able to enhance its proximate causes of growth, then the joint effect of the proximate causes of growth and inclusive institutions will lead to much quicker growth.

Suggested Citation

  • Andrew Schein, 2016. "The Relationship Between Inclusive Institutions, Proximate Causes of Growth, and Economic Growth: A Case Study of the Four Mandate Territories of Lebanon, Palestine, Syria, and Trans-Jordan, 1918-1946," Journal of Economic Issues, Taylor & Francis Journals, vol. 50(1), pages 95-120, January.
    • Handle: RePEc:mes:jeciss:v:50:y:2016:i:1:p:95-120
    DOI: 10.1080/00213624.2016.1147901
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