Institutional erosion and economic growth

Institutional erosion and economic growth

Автор: Balatsky E.V.

Журнал: Economic and Social Changes: Facts, Trends, Forecast @volnc-esc-en

Рубрика: Theoretical and methodological issues

Статья в выпуске: 3 т.16, 2023 года.

Бесплатный доступ

The paper investigates the phenomenon of institutional erosion, which is understood as a decrease in the effectiveness of institutions due to the complication (or, conversely, simplification) of the economic system. Thus, the article substantiates and verifies a hypothesis regarding the impact of economic growth on the quality of institutions. We dwell upon the idea that the possibilities of preventing institutional erosion through timely reforms are limited. This is due to the emergence of institutional friction caused by resistance to reforms on the part of certain social groups and due to the rule of increasing damage. In addition, we consider the process of erosion of human capital under the influence of reforms in the context of cognitive and psychophysiological mechanisms. We put forward a basic and an extended version of the economic growth model that includes the effect of institutional erosion. We conduct computational experiments for the basic model, which made it possible to reveal the effect of economic overheating: a less intensive mode of investment in the long term turns out preferable compared to a more stressful mode of capital accumulation due to the gradual zeroing of the results of explosive growth. We describe the mechanism of degeneration of institutions (i.e., loss of the quality of institutions and the inversion of goals) caused by their internal dialectic. We discuss the significance of a new model of economic growth with institutional erosion for explaining the processes of both ascending and descending branches of social dynamics. We also give an interpretation of some important events of our time in the terms of the new theory.

Еще

Institutions, economic growth, reforms, crisis, capital

Короткий адрес: https://sciup.org/147241611

IDR: 147241611   |   DOI: 10.15838/esc.2023.3.87.4

Список литературы Institutional erosion and economic growth

  • Acemoglu D., Robinson J. (2015). Pochemu odni strany bogatye, a drugie bednye. Proiskhozhdenie vlasti, protsvetaniya i nishchety [Why Nations Fail: The Origins of Power, Prosperity, and Poverty]. Moscow: AST.
  • Acemoglu D., Robinson J. (2021). Uzkii koridor [The Narrow Corridor: States, Societies, and the Fate of Liberty]. Moscow: AST.
  • Arrighi G. (2006). Dolgii dvadtsatyi vek: Den'gi, vlast' i istoki nashego vremeni [The Long Twentieth Century: Money, Power, and the Origins of Our Times]. Moscow: Territoriya budushchego.
  • Balatsky E., Yurevich M. (2022). Consistency principle: Theory and empirical evidence. Foresight and STI Governance, 16(3), 35–48.
  • Balatsky E.V. (2003). Economic growth and technological traps. Obshchestvo i ekonomika=Society and Economics, 11, 53–76 (in Russian).
  • Balatsky E.V. (2005). Mixed economic strategies of companies and economic growth. In: Vzaimosvyaz' institutsional'nykh izmenenii i sotsial'no-ekonomicheskoi dinamiki v sovremennoi Rossii [Interrelation of Institutional Changes and Socio-Economic Dynamics in Modern Russia]. Moscow: Zhurnal “EMM”, RGNF, TsEMI (in Russian).
  • Balatsky E.V. (2011). D. Norts kognitiv-institutional synthesis. Obshchestvennye nauki i sovremennost'=Social Sciences and Contemporary World, 5, 154–166 (in Russian).
  • Balatsky E.V. (2012). Institutional and technological traps: Analysis of ideas. Zhurnal ekonomicheskoi teorii, 2, 48–63 (in Russian).
  • Balatsky E.V. (2013). Concept of complexity and economic theory of democracy. Obshchestvo i ekonomika=Society and Economics 5, 5–24 (in Russian).
  • Balatsky E.V. (2021a). Institutional reforms and human capital. Zhurnal Novoi ekonomicheskoi assotsiatsii=Journal of the New Economic Association, 3(51), 103–124 (in Russian).
  • Balatsky E.V. (2021b). The principle of consistency in social development theory. Terra Economicus, 19(1), 36–52 (in Russian).
  • Balatsky E.V., Ekimova N.A. (2019). Effectiveness of monetary regulation in conditions of sanctions. Zhurnal institutsional'nykh issledovanii=Journal of Institutional Studies, 11(2), 94–109 (in Russian).
  • Barsukova S.Yu. (2021). Lektsii po neformal'noi ekonomike: kratko, ponyatno, naglyadno [Lectures on the Informal Economy: Briefly, Clearly, Informatively]. Moscow: Izd. dom Vysshei shkoly ekonomiki.
  • Dalio R. (2023). Printsipy izmeneniya mirovogo poryadka. Pochemu odni natsii pobezhdayut, a drugie terpyat porazhenie [Principles for Dealing with the Changing World Order: Why Nations Succeed and Fail]. Moscow: Mann, Ivanov i Ferber.
  • Fromm E. (2005). Zdorovoe obshchestvo. Dogmat o Khriste [The Dogma of Christ]. Moscow: AST: Tranzitkniga.
  • Hegel G. (2023). Nauka logiki [The Science of Logic]. Moscow: AST.
  • Jung C.G. (2010). Sinkhroniya: akauzal'nyi ob"edinyayushchii printsip [Synchronicity: An Acausal Connecting Principle]. Moscow: AST.
  • Marx K., Engels F. (1960). Sochineniya. T. 23 [Works. Volume 23]. Moscow: Gosudarstvennoe izdatel'stvo politicheskoi literatury.
  • North D. (1997). Instituty, institutsional'nye izmeneniya i funktsionirovanie ekonomiki [Institutions, Institutional Change and Economic Performance]. Moscow: Fond ekonomicheskoi knigi “Nachala”.
  • North D. (2010). Ponimanie protsessa ekonomicheskikh izmenenii [Understanding the Process of Economic Change]. Moscow: Izd. dom GU-VShE.
  • North D., Wallis J., Webb S., Weingast B. (2012). V teni nasiliya: uroki dlya obshchestv s ogranichennym dostupom k politicheskoi i ekonomicheskoi deyatel'nosti: dokl. k XIII aprel'skoi mezhdunarodnoi nauchnoi konferentsii po problemam razvitiya ekonomiki i obshchestva, Moskva, 3–5 apr. 2012 g. [In the Shadow of Violence: Lessons for Limited Access Societies. Report to the 13th April International Scientific Conference on Problems of Economic and Social Development, Moscow, April 3–5, 2012]. Moscow: Izd. dom Vysshei shkoly ekonomiki.
  • North D., Wallis J., Weingast B. (2011). Nasilie i sotsial'nye poryadki. Kontseptual'nye ramki dlya interpretatsii pis'mennoi istorii chelovechestva [Violence and Social Orders: A Conceptual Framework for Interpreting Recorded Human History]. Moscow: Izd. Instituta Gaidara.
  • Polterovich V.M. (1999). Institutional traps and economic reforms. Ekonomika i matematicheskie metody=Economics and Mathematical Methods, 35(2), 3–20 (in Russian).
  • Polterovich V.M. (2001). Transplantation of economic institutions. Ekonomicheskaya nauka sovremennoi Rossii=Economics of Contemporary Russia, 3, 24–50 (in Russian).
  • Polterovich V.M. (2002). Political culture and transformational decline. Commentary on the article by Arye Hillman “On the Way to the Promised Land”. Ekonomika i matematicheskie metody, 38(4), 95–103 (in Russian).
  • Polterovich V.M. (2006a). Strategy of institutional reforms. Perspective trajectories. Ekonomika i matematicheskie metody, 42(1), 3–18 (in Russian).
  • Polterovich V.M. (2006b). Strategy of institutional reforms. China and Russia. Ekonomika i matematicheskie metody, 42(2), 3–16 (in Russian).
  • Polterovich V.M. (2007). Elementy teorii reform [Elements of the Reforms Theory]. Moscow: Izdatel'stvo “Ekonomika”.
  • Polterovich V.M. (2022a). Competition, collaboration, and life satisfaction. Part 1. The Seven of European leaders. Economic and Social Changes: Facts, Trends, Forecast, 15(2), 31–43.
  • Polterovich V.M. (2022b). Competition, collaboration, and life satisfaction. Part 2. The fundament of leadership – collaborative advantage. Economic and Social Changes: Facts, Trends, Forecast, 15(3), 42–57.
  • Shumov V.V. (2015). National security and geopotential of the State: Mathematical modeling and forecasting. Komp'yuternye issledovaniya i modelirovanie=Computer Research and Modeling, 7(4), 951–969 (in Russian).
  • Shumov V.V. (2016). Gosudarstvennaya i obshchestvennaya bezopasnost': Modelirovanie i prognozirovanie [State and Public Security: Modeling and Forecasting]. Moscow: LENAND.
  • Taleb N.N. (2014). Antikhrupkost'. Kak izvlech' vygodu iz khaosa [Antifragile: Things That Gain from Disorder]. Moscow: KoLibri, Azbuka-Attikus.
  • Zolo D. (2010). Demokratiya i slozhnost': realisticheskii podkhod [Democracy and Complexity: A Realist Approach]. Moscow: Izd. dom GU-VShE.
Еще
Статья научная
SciUp 2024 © 2024 ©