Alternative methods of institutional development for transition economies

Title: Alternative methods of institutional development for transition economies
Creator: Marangos, John
Date: 2002
Type: Text; Journal article
Identifier: http://researchonline.federation.edu.au/vital/access/HandleResolver/1959.17/41023
Identifier: vital:547
Identifier: https://doi.org/10.1628/0932456022975286
Identifier: ISSN:0932-4569
Abstract: A radical economic change, such as moving from a centrally administered economy to an economy based on market relations, also requires reform of the institutional structure. The shock-therapy process of transition utilises market incentives to internalise the developmental process of institutions instead of relying on the government, an actor external to the whole process. In contrast, gradualists argue that the development of the institutional structure requires government action. Gradualists recommend active state intervention in institutional development. Empirical evidence is inconclusive as to the more appropriate method. It is argued that a combination of the two methods would produce an optimal sequence. (JEL: P 2, P 3).
Publisher: Mohr Siebeck
Relation: Journal of Institutional and Theoretical Economics Vol. 158, no. 3 (2002), p. 483-513
Rights: Copyright Mohr Siebeck
Rights: This metadata is freely available under a CCO license
Subject: 1401 Economic Theory; Economy; Market relations
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