Economic Institutions Research Articles

New public management as an extension of neoliberal ideology

Ideology is invisibly present in economics. Some schools of economic thought, such as Marxism or old institutional ism, admit the fact of researchers having their own value systems. However, proponents of neoliberal ideas insist on the positive and non-ideological nature of economic science. Denying neoliberalism’s ideological foundations affects socio-economic policy in regulating the public sector of the economy. The study aims to reveal the relationship between managerialism and neoliberal ideology. The foundation of research resides in the theory of new public management, old institutional economics theory, and approaches of narrative economics. The selection and full text screening of Russian-language scientific publications were carried out using narrative analysis and the PRISMA method. The evidence base covers an array of studies by Russian researchers on managerialism, new public management, and neoliberalism. The paper reveals that scholars predominantly view managerialism as a continuation of neoliberal ideology. We have traced the evolution of theoretical and practical aspects of neoliberalism, which can be classified as a loose concept subject to heavy criticism, and identified three additional types of neoliberalism specific to Russian economic science. The findings illustrate that the practical implementation of new public management shifts the focus from long-term strategic goals to short-term results.

The Impact of Land Development Rights Transfer on Urban–Rural Spatial Justice: A Case Study of Chongqing’s Land Quota Trading

Spatial justice, as a fundamental value in social systems, plays a key role in achieving social justice and improving human well-being. Drawing on theories of spatial justice, property rights, and new institutional economics, this study explores the comprehensive impact of land development rights (LDR) transfer on urban–rural spatial economic, resources, social, and ecological equity from the perspective of urban–rural spatial justice. Using the Chongqing land quota trading pilot as the core case, we apply synthetic control methods to analyze the causal effects of this policy. The results show that LDR transfer promotes urban–rural spatial resources equity in the short term, particularly through the marketization of land transactions. Over the long term, it significantly enhances urban–rural spatial economic and social equity, evidenced by the narrowing of the income gap, the growth of the primary industry, and improved connectivity between urban and rural areas. However, the improvement in ecological equity through LDR transfer lacks sustainability, suggesting the need for stronger ecological protection measures in future policies. By establishing a comprehensive framework for urban–rural spatial justice and using comparative spatial indicators to measure equity, this study advances our understanding of how LDR transfer can promote urban–rural spatial justice and provides valuable insights for future policy refinement and institutional reforms.

أهمية دراسات الجدوى في نجاح المؤسسات الاقتصادية في مدينة عمّـان - الأردن

This study examined the importance of feasibility studies in driving the success of economic institutions in Amman, Jordan, using a descriptive-analytical approach. The research sample consisted of 385 randomly selected owners of economic institutions in the city. A validated and reliable questionnaire was utilized for data collection, and SPSS was employed for analysis. Findings demonstrated that feasibility studies have a statistically significant impact on the success of economic institutions. Key aspects such as preliminary analysis, market analysis, financial analysis, and technical analysis were highlighted as crucial contributors. The study recommended forming specialized teams to conduct detailed preliminary analyses to establish a clear strategic vision. It also stressed the importance of implementing ongoing market analysis systems to monitor customer trends and adapt to emerging opportunities effectively.

Fiscal Decentralization and Education Index: Evidence from Punjab, Pakistan

The study examines how fiscal decentralization affects the education index at the district level in Pakistan's Punjab province, which has five components. Disparities in the distribution of public services have existed throughout Pakistan's history, and current research on regional development emphasizes the importance of evaluating human development phenomena using spatial models like density, locality, and distance. According to the study's findings, the distance between districts and the capital city determines the significant positive effects of fiscal decentralization on the district-level education index; the more "distance from the city" that districts are from the city, the greater the positive effects of fiscal decentralization. Since geography affects the delivery of public services, differences between districts should be addressed by enhancing social and economic institutions and infrastructure in the nation's underdeveloped areas.

Institutional fundamentals of long-run economic development (Nobel Memorial Prize in Economic Sciences 2024)

2024 Nobel Prize in Economics was awarded to Daron Acemoglu and Simon Johnson from MIT and to James Robinson from the University of Chicago for fundamental contributions to institutional economics. The laureates and their followers have suggested a number of theoretical models of institutional dynamics, giving rise to new areas of modern economic research. In addition, Acemoglu, Johnson, and Robinson have made major contributions to empirical studies of long-term economic development by establishing critical patterns that connect economic development with political and social institutions.

Business activity in the Context of Western Sanctions and Turbulence in Russia’s Strategic Development

The article examines the trends in the development of the Russian economy in the period 2020 — April 2024. For this purpose, the Business Activity Index of the Institute of Economics of the Russian Academy of Sciences (IE RAS Index) is used, the construction of which is based on monthly statistical data on basic areas of the economy. The results obtained are compared with the Index of output of goods and services by basic types of economic activity of Rosstat (Rosstat Index). Authors analyze the impact of business activity on economic growth in 2020–2021 during the coronavirus pandemic, aswell as in 2022–2024 during the special military operation in Donbas and Ukraine (SVO). It is noted that the structural restructuring that began in Russia under these conditions has become the main factor in accelerating strategic development. Business activity also had a strong impact on this process. As a result, the authors conclude that the IE RAS Index provides a more accurate estimate of gross domestic product than the Rosstat Index. This is an additional justification for its advantages, which should ensure its wider application both in the analysis of trends in the economic development of the state, and in the forecasting and analytical work of the Ministry of Economic Development of Russia and Rosstat.

The spillover effect of economic institutions on the environment: A global evidence from spatial econometric analysis.

This study examines the impact of economic institutions on ecological footprint and their spatial spillover effects globally, covering the period from 2000 to 2021. We focus on economic institutions because institutions that espouse economic freedom are essential for safeguarding environmental quality. We hypothesize that the spatial influence of these institutions varies both globally and regionally. The Moran's I test reveals significant spatial associations among countries, while the Wald and likelihood tests identify the spatial Durbin model as the most appropriate approach. Furthermore, the Hausman test indicates that a fixed effects model best captures the coefficients. Globally, economic institutions demonstrate a direct reduction effect of 16.4% and a spillover reduction effect of 4.4% on ecological footprint. However, these effects show considerable regional variation. In North America, East Asia and the Pacific, the Middle East, North Africa, Europe, and Central Asia, economic institutions effectively reduce ecological footprint, while their impact is negligible in other regions. These regional differences underscore the importance of addressing institutional deficiencies, encouraging policymakers in regions with limited effects to learn from best practices to enhance institutional effectiveness. These insights collectively advance the literature on economic institutions and environmental economics, emphasizing regional policy adaptation and the transboundary effects of institutional quality. The findings further reveal that economic institutions moderate GDP per capita to curb ecological footprint significantly. These conclusions hold even after addressing endogeneity using the generalized spatial two-stage least squares method. The study recommends that policies promoting economic freedom are essential to mitigate global environmental degradation.

Institutional Economics in the Mirror of 2023 Publications

Bibliographic studies of scientific publications have become popular nowadays. This paper attempts to answer the question – what is happening with institutional economics in Russia. The empirical base is data from the scientific electronic library Elibrary.ru on articles of 2023. At the first stage of the study, a selection of journals was carried out (76 in total). The selection criterion was belonging to Q1 of the Higher Attestation Commission list and inclusion in the top 100 journals according to the Science Index rating (Economics, Economic Sciences). The selected journals are characterised by their founders, place of publication and year of foundation. It is revealed that institutional economics is mentioned in the editorial policy of nine journals. At the second stage, we selected articles published in 76 journals by the presence of the terms "institution" and "institutional" in their titles and keywords (a total of 191 articles). We found a rather high concentration of these articles in the core of journals whose editorial policy either mentions institutional issues or whose thematic orientation is extremely broad. At the third stage, articles were sorted by annotations and keywords by expert means, and publications related to economic institutionalism (96 in total) were singled out. The distribution of these articles across journals and affiliations is shown, and the characteristics of co-authorship and collaborations are identified. The metadata of the articles was then used to conduct a content analysis of the nature and thematic focus of the articles, the data and methods used, and the terminology of the research. To better understand the nature of the research being conducted, the content analysis was supplemented by reviewing the content of the articles. The analysis made it possible to draw a conclusion about the predominance of empirical studies. Among theoretical articles there is an orientation towards the formation of original author's concepts on the basis of "synthesis" and "interdisciplinarity", as well as the so-called "conceptual creativity". In a significant part of empirical works the elaboration of theoretical foundations of research is insufficient.

Regional Sustainable Economic Development, Territorial Asymmetry, and the Role of Institutions: a Case of Russia

The existing asymmetry in socio-economic regional development in the Russian Federation indicates the need to explore this issue within the context of sustainable development and institutional economics. This paper aims to analyse the content of the triune and cluster approaches in sustainable development, while incorporating the institutionalist perspective. The study emphasizes how formal and informal institutions, such as governance quality, legal frameworks, property rights, and social norms all play a critical role in shaping regional development outcomes. Institutional economics provides a framework for understanding the interaction between federal, regional, and local institutions and their impact on overcoming territorial disparities. Seen from the perspective of institutional economics, cluster approach is an enabler or a constraint to sustainable regional development because institutions which foster economic efficiency and social inclusivity are important for spurring more rapid growth. This paper broadens the conceptual analysis of strategies for sustainable development and their ability to take into account regional disproportions in Russia, by integrating institutional factors that make it clear how important both economic and institutional reforms are required for long-term sustainability at a region level. Using a bibliometric approach and VOSviewer software, this paper visualizes and analyses foundational contributions on sustainable development and clusterization in Russia, drawing on 105 publications indexed in the Web of Science (WoS) database. The co-occurrence maps and bibliometric networks elucidate thematic clusters and reveal insights into the interplay between institutional frameworks and sustainable regional development strategies. Our results suggest that the development of regions in Russia on sustainable and equal bases should not be only economic basis, as have demonstrated some other research, but consists of a whole integral institutional treatment containing an ensemble interweaving socio-economic-environmental policies. They are not just agents of economic growth but also important factors shaping the resilience and sustainability of regions. Thus, the key to overcoming territorial skewness is through robust institutional frameworks within each region to ensure that development policies are not only inclusive but also adapted to respond effectively with peculiarities of different territories.

Do Economic Growth and Institutional Quality Affect Foreign Direct Investment Inflow?

Do Economic Growth and Institutional Quality Affect Foreign Direct Investment Inflow?

Exchange Rates and Economic Stability: The Federal Reserve's Monetary Strategy

This study looks at how the American financial and economic institutions have changed in relation to the broader global economic environment. It centers on a thorough assessment of the Federal Reserve's monetary policy trajectory throughout the previous ten to twenty years, with a focus on the introduction of quantitative easing policies and the development of communication tactics. The study analyzes how these monetary policies have adapted to various economic challenges and assesses their effectiveness. Furthermore, the research delves into the fluctuations of the U.S. dollar exchange rate and its profound implications on the national economy, including its impact on foreign direct investment and other economic indicators. Insightful information on how the Federal Reserve influences the monetary policy landscape in the US is provided by the paper's synthesis of various findings. This information is crucial for investors, financial institutions, and policymakers as they navigate the complex world of currency dynamics and global economic interdependencies.

INSTITUTIONAL ASPECTS OF IMPLEMENTATION INNOVATIVE REPRODUCTION IN THE NATIONAL ECONOMY

The institutional determinants of ensuring the expanded reproduction of the national economy on an innovative basis are substantiated. It is established that innovative reproduction is determined by the modern model and ontological principles of formation of the innovation process, which acts as an organizational basis for promoting a scientific product to a commodity producer and is focused on meeting the needs of consumers of innovations, as well as on developing own innovations that allow obtaining a long-term economic effect and are focused on the long-term nature of innovative development. It is stated that in order to modernize the innovation process at all stages of its organization, it is necessary to introduce elements of institutional design to form transitional forms of process implementation and transform them into more modern forms. It is proved that the organization of the production process based on the development of own innovations provides a spiral dynamics of reproduction, which allows obtaining in a new production cycle modernized or fundamentally new innovations that improve production, contribute to an increase in the output of innovative goods and obtaining a commercial effect in the form of additional monetary income. It is determined that the innovative type of reproduction is based on a system of regulated formal norms that direct economic entities to participate in the process of production, distribution and consumption of an innovative product. The innovative dynamics is realized through the institutions formed at each level of the hierarchy with the appropriate direction and coordination of the norms of innovative behavior of economic entities. It is argued that the dynamics of innovative transformations, the formation of an organizational model of the innovation process and the nature of extended reproduction are influenced by exogenous and endogenous factors. The endogenous factors of influence of innovative reproduction (personnel, financial, information support, equipment and technologies, organization of production) are systematized. It is substantiated that exogenous influence on innovative reproduction is exerted by factors formed by basic economic institutions, formal norms and infrastructure provision.

Regional income inequality in Ukraine: The impact of Internet and mobile access on disposable income

The effect of digitalization on inequality continues to spark discussions, with opinions divided on whether it alleviates or exacerbates the issue. This paper explores how digitalization has affected income inequality in Ukraine from 2017 to 2021. A pooled OLS model is used to investigate the relationship between mobile communication access and fixed Internet access and usage and their influence on disposable income levels. The findings reveal that mobile and Internet access significantly impact income distribution, with a notable disparity between high- and low-income regions. Specifically, wealthier regions benefit more from mobile access, while low-income regions lag due to insufficient broadband infrastructure. These results underscore the need for targeted management strategies to reduce regional income inequality via digitalization in Ukraine. The transition from desktop internet to mobile connectivity is clear, as 4G and 4G+ networks have enough speed to substitute fixed Internet and have become the primary means of internet access in Ukraine, reflecting a global trend. This highlights the increasing significance of mobile Internet, especially in lower-income regions, as a practical alternative to fixed broadband. Hence, mobile networks can boost economic participation and reduce regional disposable income inequality. The study suggests that targeted investments in digital infrastructure can significantly contribute to regional economic development. AcknowledgmentThis paper is funded as part of the project “Financial tools for reducing economic inequality in Ukraine” research project (No. 0124U002254), conducted at the State Organization “Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine.”

The future of money — seen from above

AbstractSantiago Mandirola's investment brochure describes a fictional world in which the collapse of the US dollar has transformed the global monetary landscape. This comment analyzes the brochure and its assumptions through the lens of the crypto community. It considers the highly centralized, technocratic vision of monetary governance put forth by the brochure against the crypto community's efforts to build decentralized, consensual alternatives to existing economic institutions. Highlighting crypto's engagement with issues such as inflation and distribution, the comment suggests that Mandirola's brochure overlooks important contemporary debates on economic governance and underestimates the growing significance of non‐state‐led monetary arrangements.

Are institutional innovations helpful in reducing transaction costs? An empirical analysis of agri-based Farmer Producer Companies (FPCs) in Kerala, India

Transaction costs are incurred while conducting a transaction through an exchange in the open market. New institutional economics focuses on transaction costs and the institutions involved in their reduction. This study compares the transaction costs incurred by Farmer Producer Company (FPC) members and non-members in Kerala and identifies the factors affecting these transaction costs. The study revealed no significant difference in the transaction costs incurred by FPC members and non-members. This was mainly due to the significant and higher opportunity cost of time spent on information and decision-making by FPC members compared to non-members, which surpassed the lower costs incurred for selling their farm produce by FPC members compared to non-members. Based on this study, we recommend that FPCs concentrate more on the bottom-up collectivization of individual farmers to form large business organizations that facilitate market access for small and marginal farmers and reduce transaction costs.

Green Pan-Africanism: Normative power and the making of a regional sustainability order

Abstract This article examines the role of normative power in shaping the global sustainability order. It challenges the prevailing focus on hegemonic leadership and norm diffusion from dominant states, arguing that less powerful states have contributed significantly to the global order by creating regional initiatives tailored to their unique contexts. The article adopts an alternative theoretical framework of norm-governed change, comprising norm-building, institutionalisation, and transformation. Using an illustrative case study of Africa’s regional economic institutions, it employs process-tracing and archival analysis of key policy documents. The study demonstrates how African states have proactively embedded environmental norms within their regional initiatives, while contributing to the global sustainability agenda, exemplifying a form of normative power referred to as ‘Green Pan-Africanism’. This approach broadens the understanding of global sustainability governance, positioning less economically powerful actors as active participants in world-making. The findings highlight the critical role of normative power in advancing global sustainability governance, particularly in addressing complex global challenges such as climate change.

Unfulfilled Dreams? The Financial Situation of Workers in Paris and the Department of Loir-et-Cher between 1789 and 1795

The convening of the Estates General in France in 1789 raised high hopes in French society for change. The economic demands written down in the ledgers of complaints, such as the abolition of the guild system, the unification of taxes and their more equitable distribution, the abolition of customs duties and fees within the kingdom, can be categorized as inclusive economic institutions. Their introduction in France during the Revolution was expected to translate into an improvement in the financial conditions of the population. The purpose of this article is to present the changing financial situation of workers in Paris and the department of Loir-et-Cher between 1789 and 1795 in the context of the aforementioned institutions. Data from a survey of prices and wages conducted at the behest of the Committee of Public Safety, Paris police reports of 1795 and depreciation tables were used to show the change in the financial position of working families during the French Revolution. Demands from the ledgers of complaints against the Estates General of 1789 were used to determine the title workers' "dreams." Assessing the change in the financial situation of workers required calculations that took into account, among other things, the size of the average working family's demand for foodstuffs or the change in France regarding the number of working days per year after the elimination of the old holidays and the introduction of the republican calendar. During the period under review, the financial situation of workers in the Loir-et-Cher department worsened due to high inflation – turning at times into hyperinflation – despite the implementation of most of the demands of the ledgers of complaints by the revolutionary authorities. In the case of Paris, the assessment is not so clear-cut. Thanks to the rationing of bread and meat in the capital, and their sale at a discounted price by the authorities, the living conditions of working families in 1795 were better or comparable to those at the beginning of the revolution. The article sheds new light on the changing financial situation of workers in Paris and the department of Loir-et-Cher in the context of the implementation of workers' demands recorded during the revolution in the ledgers of complaints to the Estates General of 1789, thus filling a gap in historiography.

Struggling for access in the global era: the cases of edamame and rice agriculture in rural Thailand

ABSTRACT Recent research has shown that adopting a cooperative approach in agricultural production and exchange can be an effective and sustainable method in agri-food supply chains (SCs). However, existing studies have primarily focused on treating institutions as organizational components of agricultural production and exchange, with little attention given to the power dynamics inherent in agri-food collaboration. To bridge this gap, this study has integrated perspectives from new institutional economics (NIE) and political ecology. In particular, this study has drawn on the concept of “a bundle of powers” introduced by Ribot and Peluso (2003) in the “theory of access” framework. In this paper, I investigate the power dimensions of collaboration within agri-food SCs, emphasizing the importance of understanding the political relationships of agri-food production. My findings demonstrate that, while the networking between farmers and the edamame SC tends to be more socially sustainable, interactions with the rice SC have occasionally led to adverse outcomes such as indebtedness and impeded rice farming. These findings underscore the significance of taking into account the political and power dimensions of the agri-SC to comprehend and tackle the challenges encountered by farmers in their cultivation decisions.

Why Nations Fail: The Origins of Power, Prosperity, and Poverty

This review examines “Why Nations Fail: The Origins of Power, Prosperity, and Poverty” by Daron Acemoglu and James A. Robinson, a significant contribution to understanding the complex dynamics of national success and failure. The authors argue that the fundamental determinant of a nation's economic performance lies in the nature of its political and economic institutions. Through a series of historical case studies, they illustrate how inclusive institutions foster innovation and broad-based participation, leading to prosperity, while extractive institutions concentrate power and wealth, resulting in stagnation and decline. The review highlights the book's strengths, including its interdisciplinary approach and rich historical analysis, which challenge traditional economic theories that attribute national fortunes to geography or culture. However, it also addresses criticisms, such as the book's overemphasis on institutions and its limited practical guidance for nations seeking reform. The review underscores the book's relevance in contemporary discussions about global inequality and governance, offering valuable insights for policymakers and scholars alike. Ultimately, “Why Nations Fail” serves as a vital resource for understanding the institutional foundations of economic development and remains a crucial text in the fields of political economy and development studies.

An Exploratory Spatial Data Analysis of Health Indicators in Pakistan

Pakistan exhibits significant spatial diversity in the distribution of its economic activities, accompanied by persistent regional disparities in various dimensions of health. This article aims to examine the distribution of health indices across 97 districts of Pakistan using exploratory spatial data analysis for the periods 2004-05 and 2014-15. To achieve this, an augmented health index was developed to measure health indicators across districts. The index comprises five key indicators, which were aggregated using Principal Component Analysis (PCA) to generate the final composite index. The findings reveal a positive global autocorrelation, indicating that districts with higher (or lower) health levels tend to be spatially clustered with neighboring districts exhibiting similar health outcomes. Scatterplot analyses of the health index reveal that districts in Punjab and Khyber Pakhtunkhwa (KP) predominantly fall in the High-High (HH) quadrant, while districts in Interior Sindh and Baluchistan are concentrated in the Low-Low (LL) quadrant for both study periods. These results underscore the dual structure of Pakistan's economic geography, consistent with findings from prior studies. Given the importance of geographic disparities in health outcomes, it is recommended to address inter-district inequalities by strengthening social and economic institutions and infrastructure, particularly in Baluchistan and Interior Sindh.