How to make institutional economics better

Robbert Maseland

Journal of Institutional Economics, 2011, vol. 7, issue 4, 555-559

Abstract: This comment criticizes Ha-Joon Chang's assessment of contemporary institutionalism, in his article entitled ‘Institutions and Economic Development: Theory, Policy and History’, for failing to show fundamental problems in the discourse. I argue that the current discourse's insights are structurally biased because it fails to satisfactorily address methodological problems of doing meaningful comparative research. The discourse is characterized by a limited focus on differences of degree, a neglect of interaction, and a tendency to represent societies from a partial perspective. The result is an unbalanced debate that tends towards equating developed country institutions with economic success.

Date: 2011
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