Why are some nations wealthy while others are desperately poor? Despite the rapid advancement of technology and the free flow of information provided by computers, many poor nations are falling further behind the wealthy nations of the world. Why is it that these poorer nations cannot catch up? Until recently, economic theory provided limited help in answering these questions. But the New Institutional Economics, a rapidly growing body of economic theory, may provide the answers. Timothy Yeager's Institutions, Transition Economies, and Economic Development clearly explains the New Institutional Economics, and applies its tenets to the transition economies of Poland and Russia. Readers will gain a perspective on transition and developing economies that has never been explored before in a single book.
Preface -- Introduction -- Dependency Theory and Neoclassical Growth Theory -- The Coase Theorem: The Link to Institutions -- Institutions and Economic Growth: The Static Case -- Institutions and Economic Growth: The Dynamic Case -- The Polity as Creator of Institutions -- Transition from Socialism to Capitalism -- Poland and Russia in Transition -- Institutions and Economic Development -- Mexico and South Korea in Development -- China in Transition and Development -- Conclusion