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institutional economics

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institutional economics

School of economics that flourished in the U.S. in the 1920s and '30s, which viewed the evolution of economic institutions as part of the broader process of cultural development. Thorstein Veblen laid the foundation for institutionalism with his criticism of traditional economic theory. He tried to replace the concept of people as the makers of economic decisions with a more realistic image of people as influenced by changing customs and institutions. John R. Commons emphasized the collective action of various groups in the economy, viewed within a system of continually evolving institutions and laws. Other U.S. institutional economists include Rexford Tugwell and Wesley C. Mitchell. See also classical economics, German historical school of economics.



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In this paper, we attempt to provide one such framework leveraging insights from institutional economics to demonstrate how the institutional environment, which is an agglomeration of the political and social structure of a host country, can exert significant influence on the legitimacy and survival of these investments (1) (Gomes-Casseres 1990, Zaheer/Mosakowski 1997).
For the first part of the discussion, she invokes the arguments in favor of decentralization that are advanced in Austrian economics; she uses new institutional economics for the rest.
China in Comparative Perspective"; Huang Yasheng, "Managing Chinese Bureaucrats: An Institutional Economics Perspective", Political Studies 50 (2002): 61-79; Lin et al.
 
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