Blockchains and Institutional Layering as a New Approach to Economic Development

16 Pages Posted: 4 Mar 2019

See all articles by Darcy W E Allen

Darcy W E Allen

RMIT University

Chris Berg

RMIT University - School of Economics, Finance and Marketing

Date Written: February 13, 2019

Abstract

Since the mid-twentieth century, development economists have identified barriers to economic growth including financing a savings-investment gap, planning investments, and making lasting institutional change. Efforts to overcome these development barriers range from centralised planned intervention to decentralised entrepreneurial search. In this paper we analyse the impact of blockchain technologies on economic development. We propose that blockchains facilitate a more decentralised entrepreneurial process of economic development through institutional layering. This dynamic leads to a more permissionless, polycentric and institutionally sticky economic development process. Blockchains shift the entrepreneurial process by which development problems are defined and ameliorated through time.

Keywords: Cryptoeconomics, New Development Economics, Institutional Economics, Institutional Entrepreneurship

Suggested Citation

Allen, Darcy and Berg, Chris, Blockchains and Institutional Layering as a New Approach to Economic Development (February 13, 2019). Available at SSRN: https://ssrn.com/abstract=3333568 or http://dx.doi.org/10.2139/ssrn.3333568

Darcy Allen (Contact Author)

RMIT University ( email )

440 Elizabeth Street
Melbourne, 3000
Australia

Chris Berg

RMIT University - School of Economics, Finance and Marketing ( email )

Level 12, 239 Bourke Street
Melbourne, Victoria 3000
Australia

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