Institutions, technology, and circular and cumulative causation in economics / Henning Schwardt.

Format:

Book

Author/Creator:

Schwardt, Henning, author.

Language:

English

Subjects (All):

Economic development.

Technology--Economic aspects.

Institutional economics.

Physical Description:

x, 247 pages : illustrations ; 23 cm

Place of Publication:

Houndmills, Basingstoke, Hampshire : Palgrave Macmillan, 2013.

Summary:

Institutions, Technology, and Circular and Cumulative Causation in Economics focuses on the relation between technology and institutions and their mutual influence during processes of development and change. An understanding of technology as a combination of skill and equipment jointly with the influence of the institutional framework allows identifying of a number of potentially adverse influences on the development potential and capacity in an economy. These are integrated as the isolation of single factors will not permit to formulate a generalized perspective on development processes. The possibility of differing institutional environments and differing technological capacities likely result in conditions that require context-dependent approaches for strengthening the development potential in a given situation. The development process Argentina has undergone since 1946 is used to illustrate how institutions and technology interact and impact on economic results. Book jacket.

Contents:

1 Introduction 1

1.1 Development as a distinctive phenomenon 1

1.2 Limiting factors and shifting policy focuses 3

1.3 Institutions and technology 4

1.4 Economic development 5

1.5 Changing structures and context-dependent influences 7

1.6 Argentina 8

2 Concepts of and Models for Growth and Development Dynamics 10

2.1 Neoclassical growth models and economic development 13

2.1.1 Exogenous growth models 13

2.1.2 Endogenous growth models 15

2.1.3 Discussion 18

2.2 The 'high theory of development' 23

2.2.1 General outline of development economics 23

2.2.2 Big push, balanced growth, unbalanced growth, and the dual economy 25

2.2.3 Discussion 28

2.3 New institutional economics 31

2.3.1 NIE - collective action problems 31

2.3.2 NIE - transaction costs 34

2.3.3 Discussion 38

2.4 Original institutional economics 41

2.4.1 Veblen's foundation for an institutional economics 42

2.4.2 Developments in the OIE body of theory 45

2.4.2.1 Institutions 45

2.4.2.2 Technology 48

2.4.2.3 Circular and cumulative causations 50

2.4.3 Discussion 51

2.5 Summary 54

3 The Analytical Framework: Institutions, Technology, and Circular and Cumulative Causation 58

3.1 A categorization of growth and development effects 59

3.1.1 Schumpeterian development effects 60

3.1.2 Invention and innovation, imitation and entrepreneurs 61

3.1.3 Smithian development effects 63

3.1.4 Arrovian development effects 64

3.1.5 Learning and the longer-term growth trajectory 64

3.1.6 Veblenian development effects 65

3.1.7 Solovian development effects 65

3.1.8 Circular and cumulative causation between these development effects 66

3.2 An evolutionary-institutional model of economic development 67

3.2.1 Institutions and economic development 68

3.2.2 Technology - skills 70

3.2.3 Technology - equipment 74

3.2.4 Integrating the principal influence factors in processes of development and change 79

3.3 Case studies based on an evolutionary-institutional model of economic development 84

4 Economic Development in Argentina after 1946 86

4.1 Macroeconomic and sectoral development after 1946 90

4.1.1 Macroeconpmic development: general growth performance 90

4.1.2 Macroeconomic development: investment 96

4.1.3 Macroeconomic development: fiscal accounts and external sector 97

4.1.3.1 Fiscal accounts 97

4.1.3.2 External sector 100

4.1.4 Macroeconomic development: inflation and unemployment 104

4.1.4.1 Inflation 104

4.1.4.2 Unemployment 106

4.1.5 Sectoral development: changes in sectoral structure and production 108

4.1.5.1 Sectoral structure 108

4.1.5.2 Sectoral production 109

4.1.6 Summary and current structures 112

4.2 Political changes and economic policies - Juán D. Perón, 1946-1955 115

4.2.1 Background of the policy decisions taken 116

4.2.2 Outline of Perón's economic policies 117

4.2.3 Interest groups and political objectives 121

4.2.4 Inflation as a sign for persistent structural problems 125

4.2.5 Summary - the foundation for subsequent developments 127

4.3 Political changes and economic policies - the alternation of military and civilian rule, 1955-1976 128

4.3.1 Overview of the political development of the period 129

4.3.2 The 'Revolución Libertadora' dictatorship, 1955-1958 131

4.3.3 The presidency of Arturo Frondizi, 1958-1962 133

4.3.4 The presidency of José M. Guido, 1962-1963 136

4.3.5 The presidency of Arturo U. Illia, 1963-1966 137

4.3.6 The 'Revolucion Argentina' dictatorship, 1966-1973 139

4.3.7 The second Peronist government, 1973-1976 141

4.4 Political changes and economic policies - 'El Proceso de Reorganizatión Nacional', 1976-1983 143

4.4.1 Political development 143

4.4.2 General outline of economic policies 144

4.4.3 Consequences of the policies implemented 146

4.5 Political changes and economic policies - the transition to democracy and its consolidation 1983-1999 150

4.5.1 The presidency of Raúl Alfonsín, 1983-1989 150

4.5.2 The presidency of Carlos S.Menem, 1989-1999 155

4.6 Political changes and economic policies - the collapse and recovery of the economy after 2001-2002 160

4.7 The general institutional framework 167

4.8 Main tendencies identified 174

4.8.1 Economic development until 1975 174

4.8.2 Political and social developments until 1975 178

4.8.3 Economic policies after 1975 and their consequences for development 179

4.9 Summary 183

5 Consequences for Development Policy 187

5.1 Recent development policy focuses 188

5.2 General outlines for development policy 191

5.2.1 Policies and development effects 192

5.2.2 Coordination and dilemma problems 193

5.2.3 Creating capacities and competences 193

5.2.4 Foundations for skill development 194

5.2.5 Access to knowledge and communication of results 194

5.2.6 Local-level support 195

5.2.7 Overcoming ceremonial structures 196

5.2.8 Dealing with the financial sector 196

5.2.9 Real sector activity and equipment build-up 197

5.2.10 Expectations 197

5.2.11 Context-dependence of policies 198

5.3 Consequences for development policy in Argentina 199

5.3.1 Broadening industrial structures 199

5.3.2 Mercosur 200

5.3.3 Specialization with a view to structures in Brazil 201

5.3.4 Investment and complementary structures 201

5.3.5 A qualified workforce 201

5.3.6 Choices of courses of study 202

5.3.7 Overcoming ceremonial patterns 202

5.3.8 Summary 203.

Notes:

Includes bibliographical references (pages 220-239) and index.

ISBN:

9781137333872

1137333871

OCLC:

861619088