How Do Informal & Formal Institutions Affect Economic Development in East Asia and West?
0
조회
0
다운로드
1
인용
0
참고문헌
키워드
초록
This research explores how informal and formal institutions affect economic development differently in various East Asian country groups and West. Based on previous studies, we theorize that informal and formal institutions – social trust and protection of property rights – promote economic development in West, but hinder economic development in East Asia, due to different market mechanisms. In West, informal and formal institutions promote economic development by constraining government from acting on its whim, sustaining liberal market. On the contrary, such constraints may hamper economic development in East Asia, where government plays a central role sustaining market. Using two-way fixed effects panel data analysis from 1995 to 2010, our analysis confirms our expectation for East Asia. The result is robust after analysing similar country groups – East Asia and East Asian democracies. This research makes contribution to previous studies by empirically testing different market mechanisms for development in the two regions.
Abstract
This research explores how informal and formal institutions affect economic development differently in various East Asian country groups and West. Based on previous studies, we theorize that informal and formal institutions – social trust and protection of property rights – promote economic development in West, but hinder economic development in East Asia, due to different market mechanisms. In West, informal and formal institutions promote economic development by constraining government from acting on its whim, sustaining liberal market. On the contrary, such constraints may hamper economic development in East Asia, where government plays a central role sustaining market. Using two-way fixed effects panel data analysis from 1995 to 2010, our analysis confirms our expectation for East Asia. The result is robust after analysing similar country groups – East Asia and East Asian democracies. This research makes contribution to previous studies by empirically testing different market mechanisms for development in the two regions.
참고문헌 (65)
- Acemoglu, Daron, "Institutions as a fundamental cause of long-run growth", Handbook of economic growth, 1, pp.385~472 (2005)
- Bernard, Mitchell, "States, social forces, and regions in historical time: toward a critical political economy of Eastern Asia", Third World Quarterly, 17(4), pp.649~666 (1996)
- Beugelsdijk, Sjoerd, "Trust and economic growth: a robustness analysis", Oxford economic papers, 56(1), pp.118~134 (2004)
- Bjørnskov, Christian, "How does social trust affect economic growth?", Southern Economic Journal, 78(4), pp.1346~1368 (2012)
- Boix, Carles, "Setting the rules of the game: the choice of electoral systems in advanced democracies", American political science review, 93(3), pp.609~624 (1999)
- Branstetter, Lee, "Intellectual property rights, innovation and development: Is Asia different?", Millennial Asia, 8(1), pp.5~25 (2017)
- Brülhart, Marius, "Agglomeration and growth: Cross-country evidence", Journal of Urban Economics, 65(1), pp.48~63 (2009)
- Chang, Ha-Joon, "Institutions and economic development: theory, policy and history", Journal of institutional economics, 7(4), pp.473~498 (2011)
- Chung, Kee Hoon, "Explaining Asian growth paradox through interaction between informal and formal institutions", Asian Education and Development Studies, 10(4), pp.600~614 (2021)
- Chung, Kee Hoon, "Trust and the protection of property rights: evidence from global regions", Public Choice, 189(3), pp.493~513 (2021)
- Cooray, Arusha, "Does corruption throw sand into or grease the wheels of financial sector development?", Public Choice, 177(1), pp.111~133 (2018)
- Cumings, Bruce, "The origins and development of the Northeast Asian political economy: industrial sectors, product cycles, and political consequences", International Organization, 38(1), pp.1~40 (1984)
- Dearmon, Jacob, "Trust and development", Journal of Economic Behavior & Organization, 71(2), pp.210~220 (2009)
- Dixit, Avinash, "Governance institutions and economic activity", American economic review, 99(1), pp.5~24 (2009)
- Evans, Peter, "Bureaucracy and growth: A cross-national analysis of the effects of” Weberian” state structures on economic growth", American sociological review, pp.748~765 (1999)
- Fortunato, Piergiuseppe, "Democracy, education and the quality of government", Journal of Economic Growth, 20(4), pp.333~363 (2015)
- Francois, Patrick, "Trust, social capital, and economic development", Journal of the European Economic Association, 3(1), pp.51~94 (2005)
- Ginsburg, Tom, "Courts and new democracies: recent works", Law & Social Inquiry, 37(3), pp.720~742 (2012)
- Greif, Avner, "Handbook of new institutional economics", pp.727~786 (2005), Springer
- Guiso, Luigi, "Civic capital as the missing link", Handbook of social economics, 1, pp.417~480 (2011)
- Economic Freedom of the World: 2022 Annual Report, "James Gwartney", Fraser Institute, ~ (2022)
- Hadfield, Gillian K., "Microfoundations of the Rule of Law", Annual Review of Political Science, 17(1), pp.21~42 (2014)
- Haggard, Stephan, "Institutions and growth in East Asia", Studies in comparative international development, 38(4), pp.53~81 (2004)
- Haggard, Stephan, "The rule of law and economic development", Annual Review of Political Science, 11, pp.205~234 (2008)
- Haggard, Stephan, "The rule of law and economic growth: where are we?", World development, 39(5), pp.673~685 (2011)
- Hanushek, Eric A., "Education and economic growth", Economics of education, 60, pp.67~ (2010)
- Hayo, Bernd, "Explaining de facto judicial independence", International Review of Law and Economics, 27(3), pp.269~290 (2007)
- Helmke, Gretchen., "Informal institutions and comparative politics: a research agenda", Perspective Politics, 2(4), pp.725~740 (2004)
- Henderson, J. Vernon, "Urban development: Theory, fact, and illusion" (1991), OUP Catalogue
- Holmes Jr, R. Michael, "The interrelationships among informal institutions, formal institutions, and inward foreign direct investment", Journal of Management, 39(2), pp.531~566 (2013)
- Horak, Sven, "Persistence of informal social networks in East Asia: Evidence from South Korea", Asia Pacific Journal of Management, 33(3), pp.673~694 (2016)
- Kim, Sunhyuk, "Korean Society", pp.65~84 (2006), Routledge
- Klerman, Daniel M, "Legal infrastructure, judicial independence, and economic development", Pac. McGeorge Global Bus. & Dev. LJ, 19, pp.427~434 (2006)
- Kohli, Atul, "State-directed development: political power and industrialization in the global periphery" (2004), Cambridge university press
- Kurtz, Marcus J., "Growth and governance: Models, measures, and mechanisms", The Journal of Politics, 69(2), pp.538~554 (2007)
- Landau, Daniel, "Government expenditure and economic growth: a cross-country study", Southern economic journal, pp.783~792 (1983)
- Leftwich, Adrian, "IPPG Research Consortium on Improving Institutions for Pro-Poor Growth" (2010), University of Manchester
- Li, John Shuhe, "Relation‐based versus rule‐based governance: An explanation of the East Asian miracle and Asian crisis", Review of international economics, 11(4), pp.651~673 (2003)
- Li, Shaomin, "Why some countries thrive despite corruption: The role of trust in the corruption–efficiency relationship", Review of International Political Economy, 17(1), pp.129~154 (2010)
- Linzer, Drew A., "A global measure of judicial independence, 1948–2012", Journal of Law and Courts, 3(2), pp.223~256 (2015)
- Méon, Pierre-Guillaume, "Does corruption grease or sand the wheels of growth?", Public choice, 122(1), pp.69~97 (2005)
- Melton, James, "Does de jure judicial independence really matter? A reevaluation of explanations for judicial independence", Journal of Law and Courts, 2(2), pp.187~217 (2014)
- Governance, growth, and development decision-making, "North, Douglass", The World Bank, ~ (2008)
- North, Douglass C, "Institutions, institutional change and economic performance" (1990), Cambridge university press
- Pejovich, Svetozar, "The Effects of the Interaction of Formal and Informal Institutions on Social Stability and Economic Development", Journal of Markets and Morality, 2(2) (1999)
- Putnam, Robert D, "Culture and Politics", pp.223~234 (2000), Palgrave Macmillan
- Putnam, Robert D., "Making democracy work: Civic traditions in modern Italy" (1992), Princeton university press
- Qian, Yingyi, "Federalism as a commitment to reserving market incentives", Journal of Economic perspectives, 11(4), pp.83~92 (1997)
- Ram, Rati, "Government size and economic growth: A new framework and some evidence from cross-section and time-series data", The American economic review, 76(1), pp.191~203 (1986)
- City size and national spatial strategies in developing countries, "Richardson, Harry", The World Bank, ~ (1977)
- Rigg, Jonathan, "The World Development Report 2009 ‘reshapes economic geography’: geographical reflections", Transactions of the Institute of British Geographers, 34(2), pp.128~136 (2009)
- King kong meets godzilla: the World Bank and the East Asian Miracle, "Rodrik, Dani", CEPR, ~ (1994)
- Rodrik, Dani, "Institutions rule: the primacy of institutions over geography and integration in economic development", Journal of economic growth, 9(2), pp.131~165 (2004)
- Roth, Felix, "Does Too Much Trust Hamper Economic Growth?", Kyklos, 62(1), pp.103~128 (2009)
- Sekkat, Khalid, "Urban concentration and poverty in developing countries", Growth and Change, 48(3), pp.435~458 (2017)
- Stubbs, Richard, "Rethinking Asia’s economic miracle: The political economy of war, prosperity and crisis" (2017), Bloomsbury Publishing
- Tsai, Kellee S, "Adaptive informal institutions and endogenous institutional change in China", World Politics, 59(1), pp.116~141 (2006)
- Uslaner, Eric M, "The moral foundations of trust" (2002), Cambridge University Press
- Wade, Robert, "Governing the market: Economic theory and the role of government in East Asian industrialization" (1990), Princeton University Press
- Resolving the state-market dilemma in East Asia, "Wade, Robert", Advanced Development Management Program, Institute of Comparative Culture, Sophia University, ~ (1994)
- Whiteley, Paul F, "Economic growth and social capital", Political studies, 48(3), pp.443~466 (2000)
- Williamson, Claudia R, "Informal institutions rule: institutional arrangements and economic performance", Public Choice, 139(3), pp.371~387 (2009)
- Williamson, Claudia R., "Securing private property: formal versus informal institutions", The Journal of Law and Economics, 54(3), pp.537~572 (2011)
- Woo-Cumings, Meredith, "Capital ungoverned: Liberalizing finance in interventionist states", pp.57~91 (1997), Cornell University Press
- Zhang, Chen, "Governing corporate tax management" (2019), Springer Singapore
