New Institutional Economics Perspective Research Articles

Comparison of the Competitiveness of Chinese and Korean Cultural Industries Based on the Perspective of New Institutional Economics

Based on the perspective of new institutional economics, this paper compares the competitiveness of the cultural industries in China and South Korea, and analyses the similarities and differences between the two countries in terms of the institutional environment, market structure and business cases. By sorting out the theoretical framework of new institutional economics, it explores the influence of factors such as property rights system, transaction costs and cultural industry efficiency on the development of cultural industry. China's cultural industry has advantages in terms of policy support and market scale, but the problems of insufficient intellectual property protection and imperfect market mechanism still restrict its international competitiveness. In contrast, South Korea's cultural industry is known for its mature market mechanism, strong content creation ability and effective intellectual property protection, which has successfully promoted the global spread of the "Korean Wave" culture. Through case studies of typical enterprises such as Tencent and YG Entertainment, the differences in competitiveness between the two countries' cultural enterprises in the international market are revealed. Finally, puts forward suggestions to optimise the institutional environment, strengthen international cooperation and promote cultural innovation, so as to promote the sustainable development of the cultural industries in China and South Korea. The research in this paper provides theoretical basis and empirical support for an in-depth understanding of the development mode and international competitiveness of Chinese and Korean cultural industries.

The Transformation and Innovation of China's Discipline Inspection and Supervision System from the Perspective of New Institutional Economics

The Transformation and Innovation of China's Discipline Inspection and Supervision System from the Perspective of New Institutional Economics

Institutional differences and threats to international tourists from the perspective of new institutional economics

The main aim of this article is to demonstrate theoretical connections in the context of institutional differences for the international tourist, which may constitute a source of threats due to institutional differences between countries. The article highlights theoretical threats stemming from institutional differences for international tourists from the perspective of new institutional economics, the research methods of which provide the analytical framework for this analysis. The post-pandemic period could transform preferences among international tourists, who are increasingly drawn to countries with significant cultural diversity. This creates dangers arising from institutional differences that may affect their sense of security and, consequently, have implications for social costs significant to the industry, as demonstrated during the COVID-19 pandemic, underscoring its crucial role in global economic development.

Analysis of Unlicensed Operation Supervision from the Perspective of New Institutional Economics

Analysis of Unlicensed Operation Supervision from the Perspective of New Institutional Economics

Community-government, and private partnership (CGPP): revisiting the concept of community-based forest management

The Community-Based Forest Management (CBFM) model has been seen as a potential solution to solve various problems related to forest degradation and the creation of inclusive forest governance. However, in practice, CBFM does not always implement smoothly, with some studies highlighting the weaknesses of CBFM in term of accountability, transparency, efficiency, effectiveness, empowerment, monitoring, law enforcement, and dependency on external actors. Accordingly, this paper revisits the concept of CBFM from the perspective of New Institutional Economics and the proper governance concept. The data collection process was conducted through literature studies using the Preferred Reporting Items for Systematic Reviews and Meta-analysis (PRISMA) methodology. It may be argued that the implementation of CBFM has weaknesses in terms of, amongst other things, business and organizational activities, inclusivity, community empowerment, community income, and sustainability. In reference to the various flaws encountered in the implementation of CBFM, and to put in place proper governance in forest business activities, this paper proposes a new model – the so-called Community-Government and Private Partnership model (CGPP). This developed model has positioned the cooperative as "core institutions" whose role is to orchestrate five main governance functions, namely: organizational, business activities, human resource development, and corporate and environmental sustainability. This CGPP model is expected to contribute to the existing literature of institutional analysis and forest management with a different approach, as well providing concrete recommendations for the implementation of the CGPP model in CBFM.

Economic Freedom and Environmental, Social, Governance Practices: An Analysis of the Financial Sector in the Americas

Through the theory of legitimacy and the theoretical perspective of New Institutional Economics, the purpose of this paper is to analyze the effect of economic freedom over the relationship between Environmental, Social, Governance (ESG) practices and profitability. The sample was finance companies located in the Americas, between 2017 and 2020, using the Refinitiv Eikon® database. The analysis used data modeling in a hierarchical panel. Results demonstrate that ESG practices have a positive and significant impact on profitability. Individually, only the social variable showed a positive and significant relationship over profitability. As for the moderating effect of economic freedom, it was shown that economic freedom enhances the relationship between an ESG index and profitability, and only enhances the relationship between corporate governance and profitability when analyzed individually. Furthermore, findings imply that a country’s institutional quality has an important influence on ESG practices and profitability.

How to Explore a Sustainable Profit Model for Self-publishing --Based on the Perspective of New Institutional Economics

As a new media form in the new era, self-media has been developing rapidly in China. With the globalization of economy, the continuous improvement of technology and the popularization and perfection of mobile Internet technology, the self-media industry is facing great opportunities and challenges. The profitability of self-media is getting richer and richer, and a variety of more systematic profit models are gradually formed, but the overall profitability is not optimistic, which is not unrelated to the high transaction costs and the lack of management system. This paper will explore more sustainable profit models based on the existing profit models of self-media from the perspective of new institutional economics, using transaction costs, contracts, institutional change and other related theories, and give policy recommendations for the problems.

Kurumsal İktisadın İktisadi Düşünceye Katkıları

İnsan davranışlarının iktisadi olay ve olgular üzerindeki etkisine yönelik ilginin son yıllarda artarak devam ettiği görülmektedir. Bu kapsamda, davranışların istikrar kazanarak, düşünceden eyleme kadar, toplumun paydaşları için tercih sınırlarını belirleyen ve bireysel eylemin çerçevesini oluşturan formel-enformel kurallar seti halini aldığı kurumlar, gerçek dünya ile uyumlu bir iktisadi düşünce sistemi geliştirilebilmesi açısından büyük önem arz etmektedir. İktisadi olay ve olgulara yönelik dinamik bakış açısıyla kurumsal iktisadi gelenek, kurumların iktisadi düzen üzerindeki etkisini farklı açılardan değerlendirerek önemli keşifler ortaya koymuş ve bu alanda büyük bir açığı kapatmıştır. Bu çalışma ile Thorstein B. Veblen’in Darvinci evrim yaklaşımını temel alarak ortaya koyduğu öncü çalışmalarla başlayan kurumsal iktisadın tarihsel serüveni, eski ve yeni kurumsal iktisat perspektifinden ele alınmıştır. Geleneğin önde gelen temsilcilerinin kurumları analize dâhil emek suretiyle iktisadi düşünceye yapmış oldukları katkılar ortaya konularak, insan davranışlarının iktisadi etkisine yönelik çalışmalara kurumsallaşmış davranış perspektifinden de bir kapı aralanması amaçlanmıştır. Buna ek olarak kurumsal geleneğin sürdürülebilmesine yönelik değerlendirmeler ele alınmış, günümüz hâkim iktisadi yaklaşım çerçevesinde söz konusu geleneğin avantaj ve dezavantajları vurgulanmıştır.

Kazakhstan’s Agricultural Economy after the Accession to WTO: Economic Transformation and Realistic Dilemma

As a country in modernization transition, Kazakhstan's economy has experienced a struggling process of integrating into the globalization for its accession to the WTO behind the dazzling prosperity, especially its vulnerable yet vital primary industry. Previous research stressed the agricultural economic management issues in Kazakhstan, emphasizing the static one-dimensional agricultural policy research. Compiling data analysis from the databases of the Republic of Kazakhstan Bureau of National Statistics, World Trade Organization, and World Bank, we aim to illustrate, from the theoretical perspective of new institutional economics, that while informal institutions standing still, the market economy reform, which is the transplant of the formal institution, has the endogenous dynamic effects on Kazakhstan's domestic economic sectors, especially its underdeveloped agriculture. Kazakhstan’s commitments to market access, domestic support, import subsidies, and technical barriers, are detrimental to the development of Kazakhstan's agriculture, followed by the influx of homogeneous goods, increased costs of agriculture, potential technological barriers, and even a dysfunctional industrial structure. With insufficient primary conditions, Kazakhstan's market-oriented economic reforms fluctuate the foundation of the industry, laying a hidden danger for the further modernization transformation. Actually, this dilemma of institutional transition is not a particular case in Kazakhstan, but a feature common to most developing countries undergoing modernization.

Spanish Healthcare Sector Management in the COVID-19 Crisis Under the Perspective of Austrian Economics and New-Institutional Economics.

This is a study of Political Economy, Law & Economics, and Public Choice, applied to COVID-19 crisis management, and how the Spanish healthcare sector has operated under stressful conditions. Market and state failures are evaluated and some improvements are offered, according to the theories of Austrian Economics and New-Institutional Economics. At the macro level, the premise is the decentralization of the Spanish healthcare system a long time ago, to provide a better service to citizens, according to the idiosyncrasies of the Autonomous Communities (similar to federal states). The crisis has evidenced the failures of the Spanish system and its semi-federal model, without coordination to manage the trouble. Also, the General Government's recentralization attempt has failed too, proving Mises's theorem on the impossibility of economic calculation in intervened and coactive systems, with problems of shortages, lack of coordination, etc.; Buchanan-Tullock's theorem on the unfinished agenda of state interventionist and it suppression of private sector was also proven. At the micro level, health institutions (hospitals and health centers) have fallen into the paradox of media overexposure and the fake-news risk, because the more information they have tried to transmit, the more confusion they have caused, reducing the value of the supposed transparency and accountability, in addition to decreasing citizen wellbeing, giving way to a higher level of dissatisfaction and more risk of a syndemic. To perform the analysis of accountability and wellbeing perceived, this paper has used quantitative contrast techniques on secondary sources, such as the surveys of Centro de Investigaciones Sociológicas (part of the Public Sector) or Merco rankings (independent institution).

Institutional Diversity of Transferring Land Development Rights in China—Cases from Zhejiang, Hubei, and Sichuan

With the continuous urbanization, China is facing a dilemma of achieving two conflicting targets in land governance, i.e., the continuous supply of urban construction land to support urbanization and the preservation of cultivated land for food security. Under China’s dual land system, the implementation of the “Linkage between Urban-land Taking and Rural-land Giving” (Linkage) policy is of great significance in promoting more inclusive urbanization by commodifying the land development right and connecting urban and rural land markets. In the specific land property right system and changing land governance of China, this policy appears to provide an opportunity for stakeholders other than the state to compete for the value from the transfer of development rights (TDR) and triggers the emergence of diversified approaches in organizing land projects in rural China. Based on the theoretical perspective of New Institutional Economics and empirical evidence from Zhejiang Province, Hubei Province, and Sichuan Province, this paper conducts a comparative institutional analysis for China’s TDR practice and argues that the diversified operational approaches in China’s practice have aligned various interests of the stakeholders through flexible participation methods and elaborate reallocation of land property rights, in order to fit various institutional environments and material conditions

Institutional Environment and Green Economic Growth in China

As the answer to sustainability concerns, green economic growth has gradually attracted considerable attention. Notably, the optimization of the institutional environment contributes to green economic growth from the perspective of new institutional economics. However, few studies have systematically explained the connection between the institutional environment and green growth. In this study, the institutional environment was divided into three dimensions: governmental, legal, and cultural subenvironments. We adopted econometric models with the effect of every dimension on green growth and empirically analyzed with the generalized method of moments, based on Chinese provincial panel data from the years 2000–2016. The results indicated that there was an inverted U-shaped relationship between China’s institutional environment and its green growth. That is, the institutional environment can initially promote China’s green growth but, if it is not changed, will eventually inhibit it. In addition, the analysis on the three dimensions of the institutional environment highlighted that the role of the cultural subenvironment in green growth is greater than those of the governmental and legal subenvironments.

Znaczenie dorobku nowej ekonomii instytucjonalnej dla rozwoju idei powszechnego samorządu gospodarczego w Polsce

Przedmiot badań: Przedmiotem badań jest samorząd gospodarczy i celowość jego powołania w Polsce na tle wybranych aspektów nowej ekonomii instytucjonalnej. Analiza obejmuje okres po 1989 r., kiedy to w wyniku reformy ustrojowej wprowadzono instytucję samorządu terytorial­nego oraz rozwinęły się samorządy zawodowe i organizacje przedsiębiorców, nie doszło jednak do powołania powszechnego samorządu gospodarczego.
 Cel badawczy: Celem badań jest zweryfikowanie założeń utworzenia obowiązkowego i po­wszechnego samorządu gospodarczego w Polsce w projektach ustaw opracowanych po 1989 r. oraz ocena potencjalnych korzyści jego utworzenia z wykorzystaniem definicji „instytucji” funk­cjonującej w ramach nowej ekonomii instytucjonalnej. Zamierzeniem autorów jest również we­ryfikacja tezy badawczej mówiącej, iż w warunkach małej świadomości przedsiębiorców, niskie­go poziomu kultury samorządności i samodecydowania, rozwiązaniem mogłoby być stworzenie odpowiednich ram legislacyjnych tworzących model powszechnego samorządu gospodarczego odpowiadającego na wyzwania XXI w.
 Metoda badawcza: W opracowaniu dokonano przeglądu literatury ekonomicznej i prawniczej, wyko­rzystano metodę dedukcji oraz krytyczną analizę projektów aktów prawnych opracowanych po 1989 r.
 Wyniki: Wyniki badań projektów ustaw i rozważań w świetle nowej ekonomii instytucjonalnej wskazują na możliwości obniżenia kosztów transakcyjnych, czyli kosztów społecznej koordyna­cji i kosztów funkcjonowania systemu prawno-ekonomicznego, w wyniku powołania powszech­nego samorządu gospodarczego w Polsce.

Reform of Compulsory Education Teachers’ Communication System from the Perspective of New Institutional Economics

According to the four main theory of transaction cost theory, property rights theory, state theory and the theory of institutional change from the new institutional economics, this paper gives a theoretical analysis about our country’s compulsory education teacher exchange system and puts for ward the reform path of the system.

Why Price Stability? An Answer from the Perspective of New Institutional Economics

The European System of Central Banks (ESCB) is contractually obliged to ensure price stability. That is a vital prerequisite for the applicability of the nominalistic principle in a monetary economy according to which money debt consists merely of a certain quantity of accounting units like a number of dollars or euros. The conceptual pair of the nominalistic principle and price stability is seen as plausible focal principle (Schelling) of transaction cost minimizing actors of a paper money economy. On the other hand, an inflationary target of x% as suggested by Bernanke et al. contradicts not only the nominalistic principle that actually underlies the German legal system but, on its own, is also implausible as focal principle.

Managing Public Health Expenditure in Indonesia

Following decentralization in Indonesia there is evidence of a mismatch between spending responsibilities at the local level and local government’s ability to effectively manage resources. This research investigates the relationship between institutional arrangements for public expenditure management (PEM) and inequalities in health outcomes in selected districts of Bengkulu Province, Indonesia. The primary aims of this study are to identify factors contributing to health outcome attainment differences and efficiency determinants. The role of the central government and the own-source capacity of district-level governments in financing health resources are also explained. This research differs from previous works by focusing on the inefficiency of the district-level health sector that is associated with weak PEM systems in order to explain the significant disparity in health outcome attainment within a country, using the new institutional economics (NIE) perspective as a guideline. Mixed methods procedures were adopted: quantitative and qualitative data were collected concurrently. The quantitative study utilized secondary data from data sets of government institutions. A correlational analysis, using the software package SPSS, was applied to assess the relationship between public health expenditure and other determinants with health outcomes at the provincial level. The qualitative study used primary data from in-depth face-to-face interviews with 20 key actors involved in the budget process for the health sector in four district governments of Bengkulu Province. Qualitative data were analysed using the QSR NVivo software program. This study reveals that changes in public health expenditure as a percentage of GRDP and real public health expenditure per capita and other determinants can be important factors behind observed declines in infant and child mortality and increases in life expectancy in Bengkulu Province. Other determinants of health outcomes comprise real GRDP per capita, the percentage of population participation in managed care, the percentage of delivering mothers assisted by health personnel, the ratio of midwives per 100,000 population, and the female literacy rate. The role of central government in financing health resources in the districts studied is also very prominent. These districts rely heavily on the central government and have limited financial capacity. Consequently, district governments have difficulty in performing their functions in the health sector properly because of frequently insufficient and reduced public health spending that originates from the central budget. This study also finds that the inability of institutional arrangements to adopt PEM principles has undermined the efficiency of government intervention in the health sector at district level. Weak institutional arrangements in PEM have had harmful effects on the size, allocation and use of public health expenditure, which contributes to inequalities in health outcome attainment in Bengkulu Province. Such weaknesses include the absence of constructive political engagement, lack of policy clarity, consistency and affordability, the presence of poor predictability, lack of transparency, the presence of poor comprehensiveness and integration and a lack of accountability. District governments also face severe inefficiencies in PEM that are created by delays in the budget approval processes. The introduction of market-based practices in PEM of the district governments studied has been unable to prevent potential opportunistic political behaviour. This has led to failure in reducing or eliminating the costs of negotiating and enforcing political agreements in allocating public resources by policy makers, since the budget can be viewed as a contract. These findings reinforce the criticism that the applicability of the PEM technique is country-specific. Proper institutional arrangements that address an Indonesia-specific context are required for the success of PEM. Using the NIE perspective, the findings support the view that hierarchies as an alternative mode of governance are more appropriate than markets, which cannot reduce transaction costs. Results-oriented cultures of the PEM approach cause difficulty in implementing this approach due to serious measurement problems in the health service.

An Analyses of the Institution of the Catholic Church from the Perspective of New Institutional Economics and as a 'Carrier of History' (David, 1994) in the Handling and Reporting of Child Sexual Abuse, Given its Role as a Social Institution within Wider Irish Society

This paper analyses the institution of the Catholic Church from the perspective of new institutional economics and as a “carrier of history” (David, 1994). This paper surveys the relevant body of literature and applies it directly to the problem of the lack of reporting of and the improper handling of child sexual abuse by the Catholic Church, given its role as a social institution within wider Irish society.

Efficiency of Institutions From the Perspective of New Institutional Economics With Emphasis on Knightian Uncertainty

The efficiency of institutions, understood in the sense of constraint optimization, does not make much sense when discussing the New Institutional Economics (NIE), i. e., under conditions in which institutions matter. For such a world one has to use non-optimizing methods to assess the economic effectiveness of institutions. That is how representatives of the NIE proceed. While the earlier literature on the NIE focuses on the role of transaction costs in its explanation of the economic effectiveness of institutions (e.g., Coase 1937), this paper emphasizes the role of incomplete foresight (Knightian uncertainty). We consider the answers of five well-known economists – among them two representatives of the NIE school – to the problem of Knightian uncertainty. Taking their arguments into account we discuss the economic effectiveness of the following economic institutions of capitalism: competitive markets, money, contracts, firms. The efficiency of economic institutions under conditions of Knightian uncertainty depends not only on the adaptability of institutional rules to unforeseen events, but also on the shared beliefs of their agents (corporate culture, national responsibility) and the skills of entrepreneurial or political leadership of those in charge. There is no clear-cut concept of economic efficiency of institutions comparable with Pareto efficiency. Prudent economists have no other choice but to use a balanced comparative style of reasoning – as actually applied in the NIE literature – and to warn those in power against “Utopian social engineering” (Popper).

Reflections on Efficiency of Institutions from the Perspective of New Institutional Economics with Emphasis on Knightian Uncertainty

Reflections on Efficiency of Institutions from the Perspective of New Institutional Economics with Emphasis on Knightian Uncertainty

The Economics Analysis of Large-Scale Project Organization

Large-scale projects have the features that large organization size, complex relationships between the organization and a serious information asymmetry between project participants. This study carries out in-depth economic analysis about large-scale projects organization, based on principal-agent theory and transaction cost theory from the perspective of new institutional economics, at the same time, establish the economic theoretical framework, it has positive significance to the rational design of the project contract and scientific analysis of the construction economic relations.