IDEAS home Printed from https://ideas.repec.org/a/taf/rmdjxx/v8y2016i1p32-64.html
   My bibliography  Save this article

Institutional evolution and economic development in Iran and Turkey

Author

Listed:
  • Esra Çeviker Gürakar
  • Emin Köksal

Abstract

Iran and Turkey historically had outwardly similar politoconomic experiences. Particularly after World War I there were both similar institutional reform programs on the two countries’ agendas and convergence in their economic growth and development levels. However, this convergence came to a standstill with their picking of totally diverse economic institutions in 1980s. This study attempts to provide an analysis of this diverse transformation of economic institutions in Iran and Turkey in light of the new approach proposed – The Clash of Paths (CoP). We assume that institutions are not typically chosen for the general benefit of society, but are rather imposed by groups with political power. We propose that the establishment, reformation and transformation of economic institutional structures in different countries are endogenous to two important determinants: (i) diverse political institutional structures that determine formal constraints on political power relations; (ii) diverse societal ‘mental models’ that create informal constraints on cognitive and relational patterns. The ‘formal’ and the ‘informal’ constraints evolve in interaction with external institutional paths that a country's path clashes with. In this study we also construct a simple bargaining game to integrate macro aspects of institutional evolution drawn under CoP to a micro-level explanation of the emergence and change of institutions. The micro-level analysis suggests that institutional evolution is very much connected to politically powerful groups’ decisions to reach or reject a consensus, which is something that is built or destroyed on the basis of actors’ projected utilities. Actors’ decisions in turn are dependent on their ability to solve the collective action and resource mobilization problems in order for their commitments or threats to be credible.

Suggested Citation

  • Esra Çeviker Gürakar & Emin Köksal, 2016. "Institutional evolution and economic development in Iran and Turkey," Middle East Development Journal, Taylor & Francis Journals, vol. 8(1), pages 32-64, January.
    • Handle: RePEc:taf:rmdjxx:v:8:y:2016:i:1:p:32-64
    DOI: 10.1080/17938120.2016.1150008
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/17938120.2016.1150008
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/17938120.2016.1150008?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
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Arthur, W Brian, 1989. "Competing Technologies, Increasing Returns, and Lock-In by Historical Events," Economic Journal, Royal Economic Society, vol. 99(394), pages 116-131, March.
    2. Acemoglu, Daron & Johnson, Simon & Robinson, James A., 2005. "Institutions as a Fundamental Cause of Long-Run Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 6, pages 385-472, Elsevier.
    3. Arthur T. Denzau & Douglass C. North, 1994. "Shared Mental Models: Ideologies and Institutions," Kyklos, Wiley Blackwell, vol. 47(1), pages 3-31, February.
    4. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    5. Daron Acemoglu & Simon Johnson & James Robinson, 2005. "The Rise of Europe: Atlantic Trade, Institutional Change, and Economic Growth," American Economic Review, American Economic Association, vol. 95(3), pages 546-579, June.
    6. Gary S. Becker, 1983. "A Theory of Competition Among Pressure Groups for Political Influence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(3), pages 371-400.
    7. Daron Acemoglu & Simon Johnson & James A. Robinson, 2002. "Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(4), pages 1231-1294.
    8. Walton, Thomas, 1980. "Economic Development and Revolutionary Upheavals in Iran," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 4(3), pages 271-292, September.
    9. Chaudhry, Kiren Aziz, 1989. "The price of wealth: business and state in labor remittance and oil economies," International Organization, Cambridge University Press, vol. 43(1), pages 101-145, January.
    10. Philippe Aghion & Steven Durlauf (ed.), 2005. "Handbook of Economic Growth," Handbook of Economic Growth, Elsevier, edition 1, volume 1, number 1.
    11. Geoffrey M. Hodgson, 2008. "How Veblen Generalized Darwinism," Journal of Economic Issues, Taylor & Francis Journals, vol. 42(2), pages 399-405, June.
    12. Colin Crouch & Henry Farrell, 2004. "Breaking the Path of Institutional Development? Alternatives to the New Determinism," Rationality and Society, , vol. 16(1), pages 5-43, February.
    13. John Adams, 1994. "Economy as Instituted Process: Change, Transformation, and Progress," Journal of Economic Issues, Taylor & Francis Journals, vol. 28(2), pages 331-355, June.
    14. Pierson, Paul, 2000. "Increasing Returns, Path Dependence, and the Study of Politics," American Political Science Review, Cambridge University Press, vol. 94(2), pages 251-267, June.
    15. Marie-Laure Salles-Djelic & Sigrid Quack, 2007. "Overcoming path dependency: path generation in open systems," Post-Print hal-01891993, HAL.
    16. Yalcintas, Altug, 2010. "Intellectual Paths And Pathologies: How Small Events In Scholarly Life Accidentally Grow Big," Journal of the History of Economic Thought, Cambridge University Press, vol. 32(4), pages 621-622, December.
    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. Thorsten Beck & Luc Laeven, 2006. "Institution building and growth in transition economies," Journal of Economic Growth, Springer, vol. 11(2), pages 157-186, June.
    2. Liu, Xianda & Hou, Wenxuan & Main, Brian G.M., 2022. "Anti-market sentiment and corporate social responsibility: Evidence from anti-Jewish pogroms," Journal of Corporate Finance, Elsevier, vol. 76(C).
    3. Capolupo, Rosa, 2009. "The New Growth Theories and Their Empirics after Twenty Years," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 3, pages 1-72.
    4. Nobuhiro Mizuno & Katsuyuki Naito & Ryosuke Okazawa, 2017. "Inequality, extractive institutions, and growth in nondemocratic regimes," Public Choice, Springer, vol. 170(1), pages 115-142, January.
    5. P. Dorian Owen, 2017. "Evaluating Ingenious Instruments for Fundamental Determinants of Long-Run Economic Growth and Development," Econometrics, MDPI, vol. 5(3), pages 1-33, September.
    6. In Do Hwang, 2017. "Which Type of Trust Matters?:Interpersonal vs. Institutional vs. Political Trust," Working Papers 2017-15, Economic Research Institute, Bank of Korea.
    7. Zeghni, Sylvain & Fabry, Nathalie, 2008. "Building institutions for growth and human developement : an economic perspective applied to transitional countries of Europe and CIS," MPRA Paper 9235, University Library of Munich, Germany.
    8. Wafa Ghardallou & Dorsaf Sridi, 2020. "Democracy and Economic Growth: a Literature Review," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(3), pages 982-1002, September.
    9. Marco Percoco, 2013. "Geography, institutions and urban development: Italian cities, 1300–1861," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(1), pages 135-152, February.
    10. Tamura, Robert & Dwyer, Jerry & Devereux, John & Baier, Scott, 2019. "Economic growth in the long run," Journal of Development Economics, Elsevier, vol. 137(C), pages 1-35.
    11. Dietrich Vollrath, 2011. "The agricultural basis of comparative development," Journal of Economic Growth, Springer, vol. 16(4), pages 343-370, December.
    12. Comin, Diego & Mestieri, Martí, 2014. "Technology Diffusion: Measurement, Causes, and Consequences," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 2, pages 565-622, Elsevier.
    13. Terrence Kairiza & George Kembo & Vengesai Magadzire & Lloyd Chigusiwa, 2023. "Gender gap in the impact of social capital on household food security in Zimbabwe: does spatial proximity matter?," Review of Economics of the Household, Springer, vol. 21(1), pages 245-267, March.
    14. Flachaire, Emmanuel & García-Peñalosa, Cecilia & Konte, Maty, 2014. "Political versus economic institutions in the growth process," Journal of Comparative Economics, Elsevier, vol. 42(1), pages 212-229.
    15. Eric C. Edwards & Martin Fiszbein & Gary D. Libecap, 2022. "Property Rights to Land and Agricultural Organization: An Argentina–United States Comparison," Journal of Law and Economics, University of Chicago Press, vol. 65(S1), pages 1-33.
    16. Boettke, Peter J. & Coyne, Christopher J. & Leeson, Peter T., 2013. "Comparative historical political economy," Journal of Institutional Economics, Cambridge University Press, vol. 9(3), pages 285-301, September.
    17. Beck, T.H.L., 2010. "Legal Institutions and Economic Development," Other publications TiSEM 8aa07b48-ce55-4cf6-8754-7, Tilburg University, School of Economics and Management.
    18. Jinfeng Luo & Yi Wen, 2015. "Institutions Do Not Rule: Reassessing the Driving Forces of Economic Development," Working Papers 2015-1, Federal Reserve Bank of St. Louis.
    19. Dias, Joilson & Tebaldi, Edinaldo, 2012. "Institutions, human capital, and growth: The institutional mechanism," Structural Change and Economic Dynamics, Elsevier, vol. 23(3), pages 300-312.
    20. Aldashev, Gani & Zanarone, Giorgio, 2017. "Endogenous enforcement institutions," Journal of Development Economics, Elsevier, vol. 128(C), pages 49-64.

    More about this item

    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:taf:rmdjxx:v:8:y:2016:i:1:p:32-64. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rmdj .

    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.