Institutions and economic development: What we know about it? Key words: institution, organization, economic development; economic growth Edgar Demetrio Tovar-García Высшая школа экономики, Москва www.hse.ru Institutions? 1.Formal institutions фото 2.Informal institutions фото 3.Organizations фото Высшая школа экономики, Москва Программная инженерия Высшая школа экономики, Москва Программная инженерия “Rules of the Game” Institutions matter! Высшая школа экономики, Москва Программная инженерия (Menard and Shirley, 2011: 33) Высшая школа экономики, Москва Institutions and Economic Development Why are some countries rich and others poor? фото фото фото Высшая школа экономики, Москва, Программная инженерия 𝐺𝐷𝑃 = 𝛽0 + 𝛽1 𝐶𝐴𝑃𝐼𝑇𝐴𝐿 + 𝛽2 𝐿𝐴𝐵𝑂𝑅 + 𝑢 Высшая школа экономики, Москва Программная инженерия “North’s research changed many economists’ view of development from a process of growth spurred by new technology and capital accumulation to a dynamic process of institutional change” (Menard and Shirley, 2011: 3) Высшая школа экономики, Москва Программная инженерия “Third World countries are poor because the institutional constraints define a set of payoffs to political/economic activity that do not encourage productive activity” (North, 1990: 110). Высшая школа экономики, Москва Программная инженерия “In addition to capital accumulation, being developed economically entails having sophisticated economic organizations and credible enforcement of property rights and other contractual commitments. Similarly, being developed politically entails having rule of law, a constitutional setting in which all major players accept changes of power, effective legal recognition of organizational rights independently of who is in power, and state control of organized violence.” (North et al. 2009, p. 3) Высшая школа экономики, Москва Empirical Evidence Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output Per Worker Than Others?,"The Quarterly Journal ofфото Economics, MIT Press, vol. 114(1), pages 83-116, February. Output per worker varies enormously across фото countries, why? • Physical capital and educational attainment can only partially explain the variation in output per worker • Productivity, and therefore output per worker are фото driven by differences in institutions and government policies Высшая школа экономики, Москва, Программная инженерия фото фото фото Высшая школа экономики, Москва Программная инженерия фото фото фото Высшая школа экономики, Москва Программная инженерия фото Высшая школа экономики, Москва 2) DaronПрограммная Acemoglu & Simon инженерия 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. Which are the effects of institutions on economic performance? Effects of institutions on income per capita? Europeans adopted very different colonization policies in different colonies, with different associated фото institutions. In places where Europeans faced high mortality rates, they could not settle and were more likely to set up extractive institutions. These institutions persisted to the present. Высшая школа экономики, Москва Программная инженерия фото Высшая школа экономики, Москва Программная инженерия фото Высшая школа экономики, Москва Программная инженерия фото Высшая школа экономики, Москва Программная инженерия фото Высшая школа экономики, Москва Программная инженерия фото Высшая школа экономики, Москва Программная инженерия фото Высшая школа экономики, Москва Political markets “Political markets are more prone to inefficiency than economic markets. The cost фото is of measuring and enforcing agreements higher in political markets, North argued, because what is being exchanged – promises for votes – is inherently difficult to measure. фото Voters may find it hard to judge if the actions of their representatives produce outcomes that favor voter interests; voters may not even know what their interests are under certain фото policy choices” (Menard and Shirley, 2011: 7). Высшая школа экономики, Москва, Conclusion Institutions matter! фото фото фото Высшая школа экономики, Москва, 101000, Россия, Москва, Мясницкая ул., д. 20 Тел.: (495) 621-7983, факс: (495) 628-7931 www.hse.ru