Why Countries Transition? The Case of Brazil, 1964–2016

Atlantic Economic Journal, pp 1-28, June 2016

Posted: 7 Jun 2016

See all articles by Lee J. Alston

Lee J. Alston

Ostrom Workshop; National Bureau of Economic Research (NBER)

Marcus Andre Melo

Universidade Federal de Pernambuco (UFPE)

Bernardo Mueller

Universidade de Brasilia

Carlos Pereira

Getulio Vargas Foundation (FGV)

Date Written: June 5, 2016

Abstract

Economic and political development are contextual. Nevertheless, there are some general elements in the process of institutional persistence and change. We present a framework that goes beyond the standard institutional analysis and adds the concepts of beliefs, leadership, and windows of opportunities in a dynamic process of change. Beliefs of the dominant network may lead countries to choose institutions that do not promote growth and prosperity, even in cases where those in power seek to pursue the common good. Leadership during windows of opportunity helps to determine when, how, and why beliefs change over time. Although each of these concepts alone is not novel in the literature, our major contribution is the evolutionary dynamic. To illustrate the framework, we flesh out the dynamics with a case study of Brazil from 1964 to 2016.016.

Keywords: Beliefs, Leadership, Institutions, Windows of Opportunity, Brazil, Development

JEL Classification: O10, O43, O57, N10, D83

Suggested Citation

Alston, Lee J. and Melo, Marcus André and Mueller, Bernardo and Pereira, Carlos, Why Countries Transition? The Case of Brazil, 1964–2016 (June 5, 2016). Atlantic Economic Journal, pp 1-28, June 2016. Available at SSRN: https://ssrn.com/abstract=2790609

Lee J. Alston

Ostrom Workshop ( email )

513 N. Park Avenue
Bloomington, IN 47408–3895
United States

HOME PAGE: http://ostromworkshop.indiana.edu/alston/

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Marcus André Melo

Universidade Federal de Pernambuco (UFPE) ( email )

Cidade Universitária
Cidade Universitária, Pernambuco 50670-901
Brazil

Bernardo Mueller

Universidade de Brasilia ( email )

Dept. de Economia
Universidade de Brasilia
Brasilia, DF 70910-900
Brazil
55 61 981110349 (Phone)
55 61 3349-1303 (Fax)

HOME PAGE: http://bpmmueller.wixsite.com/bernardo-mueller

Carlos Pereira (Contact Author)

Getulio Vargas Foundation (FGV) ( email )

R. Dr. Neto de Araujo 320 cj 1307
Rio de Janeiro, Rio de Janeiro 22250-900
Brazil

HOME PAGE: http://ebape.fgv.br/en/faculty-members/carlos-pereira

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