Abstract
This article traces out the development of the New Institutional Economics (NIE). It delineates the literature into two interrelated themes of institutional environment and institutions of governance. The rules of the game of institutional environment determine governance choices. Inefficient institutional environment results in inefficient governance mechanisms which causes misutilization of scarce resources. Institutional environment evolves over time. This article demonstrates the evolution of institutions in response to shocks with analysis of historical examples. The prevailing literature over glorifies the colonial rule of the West for the emergence of capitalist institutions. It fails to explain success stories of Japan, Mainland China and South Korea. In case of India, its present success story of democracy and economy should be traced to its ancient civilization not just the British colonial rule. Detailed research by economists on institutional evolution and functioning of India will be a good contribution to the literature.
Date Received
February 6, 2025
Date Revised
May 7, 2025
Date Accepted
May 12, 2025
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.
Recommended Citation
Patibandla, Murali
(2025)
"New Institutional Economics : A Few Extensions,"
Markets, Globalization & Development Review:
Vol. 10:
No.
1, Article 2.
DOI: 10.23860/MGDR-2025-10-01-02
Available at:
https://digitalcommons.uri.edu/mgdr/vol10/iss1/2
Included in
Development Studies Commons, Economic History Commons, Economic Theory Commons, Growth and Development Commons, International Business Commons, Political Economy Commons, Public Affairs, Public Policy and Public Administration Commons
Author Bio
Murali Patibandla is distinguished visiting professor at Paari School of Business, SRM University, Amravati, India. Prior to this he was professor at the Indian Institute of Management Bangalore, associate professor at Copenhagen Business School, and associate professor at the Indian Institute of Management Ahmedabad. He was Fulbright Post-doctoral Scholar at the University of California, Berkeley. His book Evolution of Markets and Institutions: A Study of an Emerging Economy was published by Routledge Taylor and Francis (hardback 2006 and is in print in paperback). His book International Trade and Investment Behaviour of Firms was published by the Oxford University Press (2020). He published influential academic articles in the leading international journals such as Journal of Economic Behavior and Organization, Journal of Development Studies, World Development, Journal of Economic Surveys, International Journal of Management and Decision Making, Journal of East-West Business, and Economic and Political Weekly of India. He was awarded Lifetime Achievement Award for contribution to economics by the Venus International Foundation 2017 Chennai, India. His book of poems A Garden with a Broken Fence was published by Penguin, 2015.