Understanding the Relationship between Institutions and Economic Development: Some Key Theoretical Issues
Revista de Economía Institucional, Vol. 8, No. 14, First Semester 2006
12 Pages Posted: 15 Jul 2006
This paper discusses how the theory on the role of institutions in development can be improved, by critically examining the current orthodox discourse on institutions. To understand the relationship between institutions and economic development, it is necessary to have some balance between institutional forms and functions, and to accept its multi-faceted nature. It concludes that a successful institutional adaptation must be politically legitimated by the members of society and requires a better knowledge of the historical and contemporary experiences of each country.
Keywords: institutions, economic development, institutional forms and functions
JEL Classification: B52, O10
Suggested Citation: Suggested Citation