Institutional factors of economic growth


  • L. Dubovická University of Central Europe in Skalica, Education and Consulting Centre Košice
  • T. Varcholová University of Central Europe in Skalica, Education and Consulting Centre Košice
Keywords: economic development; formal and informal institutions.

Abstract

The institutional theories of economic thinking, especially the modern economic theory - a new institutional economy - deserve attention in connection with the elaboration of the issue of the influence of the institutional structure and the quality of the institutional environment on the prosperity of companies and states. Its origins are related to article of R.Coase, "The Nature of the Firm", published in 1937, explaining the essence and importance of transaction costs for the operation of companies, and pointing to the need for their introduction into economic analysis. However, by the mid-1970s, it remained on the periphery of economic science, coming to the forefront in the recent decades. The title of this direction - a new institutional economy - was introduced into the scientific terminology by O.Williamson (Couse, 1998). Initial development of new institutional theory is almost exclusively centered in the United States, in the 1980s Western Europe was involved in this process, followed by Central European and East European economists in the early nineties. Recognition of the merits of the new direction was expressed by the award of the Nobel Prize for Economics to two of the most prominent representatives - R. Coaseu (1991) and D.North (1993). In particular, A. Alchian, J. Bjukenen, G. Hodson, H.Demetz, K. Munar, M. Olson, R. Posner, E. Rosenbaum and others contributed to the development of the new institutional economy.

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Published
2020-02-28
How to Cite
Dubovická, L., & Varcholová, T. (2020). Institutional factors of economic growth. Fundamental and Applied Researches in Practice of Leading Scientific Schools, 37(1), 42-47. Retrieved from https://farplss.org/index.php/journal/article/view/671