Institutions and Market Economies : The Political Economy of Growth and Development

v vi Contents 3.5 Consequences of rent-seeking: The economic record, 1945-72 3.6 Institutional stability and the linen lobby: Northern Ireland's political economy, 1945-63 3.7 Institutions and economy at the crossroads: Northern Ireland's political economy, 1963-72 3.8 Conclusions: Rent-seeking and economic history 4 Institutional Capacity and Social Capability: Japan's 'Deviant' Capitalism in the High-growth Period and Beyond w. R. Garside 4.1 Enter the critics 4.2 State versus market: A vacuous debate? 4.3 Catch-up and institutional capacity 4.4 The distinctiveness of post-war institutionalism 4.5 Conclusion 5 The Developmental Logic of Financial Liberalization in Taiwan Elizabeth Thurbon 5.1 Taiwan's distinctive brand of developmentalism and its financial policy implications 5.2 The developmental logic of financial liberalization in Taiwan 5.3 Liberalization of the domestic banking sector Contents ix 13 The Professions as Systems that Support Transactions Involving Knowledge: Their Contribution to Economic Development and their Response to the Growth of Global Markets Gordon Boyce 13.1 Introduction 13.2 Professions and the transmission of knowledge 13.3 The professional 'template' 13.4 Systemic links 13.5 The rise of a distinctive institutional framework 13.6 EQUIS and AACSB 13.7 Conclusion 14 Communicative Transaction Benefits S. Kesting 14.1 Transaction costs compared to what? 14.2The neoclassical market as model of reference 14.3 Olson's critique of the transaction cost approach 14.4 Comparing institutional arrangements with distinct path histories 14.5 Shared mental models: A linear, unilateral form of interaction 14.6 The image as explanation for transaction benefits 14.7 The role of democratic participation in the modern welfare state: Virtuous and vicious cumulative circular causation based on public discussions 14.8 The original institutional approach 14.9 Theory of communicative action: Habermas' discourse ethics 14.10 Conclusion Index Front Matter....Pages i-xix Introduction: Economic Growth and Development — An Institutional Perspective....Pages 1-13 Institutions and Economic Development: Economic History and Human Arrangement....Pages 14-38 A ‘Tiresome Complexity’? Rent-seeking, Devolution and Economic Performance in Northern Ireland, 1945–72....Pages 39-64 Institutional Capacity and Social Capability: Japan’s ‘Deviant’ Capitalism in the High-growth Period and Beyond....Pages 65-86 The Developmental Logic of Financial Liberalization in Taiwan....Pages 87-111 The Institutional Legacy and the Development of an Australian National Innovation System....Pages 112-136 The Deep Determinants of Long-run Growth and Economic Development....Pages 137-166 The Deep Determinants of Health and Education: Institutions versus Geography....Pages 167-185 Diseases Dominate....Pages 186-221 When Can the Rabble Redistribute? Democratization and Income Distribution in Low- and Middle-income Countries....Pages 222-249 Globalization as the Institutionalization of Neoliberalism: Commodification, Financialization, and the Anchorless Economy....Pages 250-277 The Democratic Peace and Substitutability During International Crises: Institutionalized Democracy and Foreign Policy Choices....Pages 278-304 The Professions as Systems that Support Transactions Involving Knowledge: Their Contribution to Economic Development and their Response to the Growth of Global Markets....Pages 305-321 Communicative Transaction Benefits....Pages 322-342 Back Matter....Pages 343-346 This book is a timely reminder of the more fundamental determinants of capital accumulation and innovation. It provides a mixture of conceptual, empirical, historical and methodological approaches to the relationship between institutions, institutional change and economic development. Average standards of living in the richest countries in the world are more than a hundred times greater than those in the poorest countries. Much of the research on economic growth in the last twenty years adopts a 'production function' approach to try to explain this phenomenon, relating the growth of output to the growth of inputs into the production process, particularly technological change and accumulation of physical and human capital. However, this does not explain what determines capital accumulation and innovation. There is now a search for the 'deeper', more fundamental, determinants of capital accumulation an innovation and, hence, long-term growth and development. A number of key factors have been identified, including geography, extent of integration with world markets, soundness of macroeconomic policies, and quality of institutions. This book is a timely reminder of the interest in institutions and the need for an interdiscliplinary approach. It enriches the contemporary debate by providing a mixture of conceptual, empirical, historical and methodological approaches to the relationship between institutions, institutional change and economic development