Abstract
This paper examines the influential theory of Daron Acemoglu, Simon Johnson, and James Robinson (AJR) on the role of institutions in economic development, highlighting its strengths, limitations, and areas for further research. A central contribution of their work is the emphasis on power and conflict in institutional formation and change.
The theory's focus on the interplay between inequality, political power, and institutional change provides a valuable framework for understanding development trajectories. This paper also considers critiques of AJR's work, including the lack of robustness of the positive correlation between inclusive institutions and economic performance in lower-income countries and the significant opportunity costs associated with building and sustaining effective institutions. Future research should explore the role of informal institutions and cultural factors in shaping development, as well as the complex dynamics of institutional change in diverse contexts.
Date Received
November 30, 2024
Date Revised
December 3, 2024
Date Accepted
December 10, 2024
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.
Recommended Citation
Duman, Alper
(2024)
"Institutions Matter: How So?,"
Markets, Globalization & Development Review:
Vol. 9:
No.
2, Article 3.
DOI: 10.23860/MGDR-2024-09-02-03
Available at:
https://digitalcommons.uri.edu/mgdr/vol9/iss2/3
Included in
Development Studies Commons, Economics Commons, History Commons, International Business Commons, Political Theory Commons, Public Interest Commons, Sociology Commons
Author Bio
Alper Duman is professor at the Department of Economics in Izmir University of Economics, Turkey. After graduating at METU Economics department, he completed the PhD program in Economics at the University of Massachusetts, Amherst.The author has been to Universidad de San Andres in Buenos Aires and to London School of Economics in London as a visiting scholar. The author's research is on political economy, and on social and economic networks.