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Heterogeneity in Institutional Effects on Economic Growth: Theory and Empirical Evidence

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  • Tamilina, Larysa
  • Tamilina, Natalya

Abstract

This article explains the peculiarities of institutional effects on growth rates in post-communist countries. By proposing a certain dependence of the institution-growth nexus on the nature of institutional emergence, the distinction between revolutionary and evolutionary processes of institution formation is introduced. Theoretical and empirical juxtapositions show that transition countries’ institutions which are constructed revolutionarily differ from those that emerge evolutionarily in a twofold manner in their relationship to growth. Growth rates of their economies are less likely to depend on the quality of economic institutions and are more likely to be a function of the maturity of political institutions. In addition, economic institutions in post-communist countries are a product of the quality of political bodies to a greater extent than their evolutionary alternatives.

Suggested Citation

  • Tamilina, Larysa & Tamilina, Natalya, 2014. "Heterogeneity in Institutional Effects on Economic Growth: Theory and Empirical Evidence," MPRA Paper 63170, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:63170
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    File URL: https://mpra.ub.uni-muenchen.de/63170/1/MPRA_paper_63170.pdf
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    References listed on IDEAS

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    Cited by:

    1. Ionel Bostan & Flavian Clipa & Raluca Irina Clipa, 2016. "Informal Institutions And Economic Performance," Knowledge Horizons - Economics, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 8(2), pages 53-58, June.
    2. repec:ana:journl:v:3:y:2017:i:2:p:3-24 is not listed on IDEAS

    More about this item

    Keywords

    Economic Growth; Formal Institutions; Institutional Formation; Institutional Change; Post-Communist Countries;

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy
    • P37 - Economic Systems - - Socialist Institutions and Their Transitions - - - Legal

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