Fundamental concepts of economic growth in institutional theory

Volodymyr Vydobora
PhD in Economics, Associate Professor, General Economic Theory and Economic Policy Department, Odessa National Economic University, Ukraine, e-mail: vidoboravolodimir@gmail.com, ORCID ID: https://orcid.org/0000-0003-2255-0970

Cite this article:

Vydobora, V. (2021). Fundamental concepts of economic growth in institutional theory [Fundamentalni kontseptsii ekonomichnoho zrostannia v instytutsiinii teorii], Socio-economic research bulletin, Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 3-4 (78-79), pp. 9–18.

Abstract

The theoretical and practical aspects of fundamental concepts of economic growth in institutional theory are investigated in the article. The aim of article is to study the fundamental concepts of economic growth, which formed by representatives of the institutional direction of economic theory, in the context of the possibility of their application in shaping the country’s economic growth policy in modern economic conditions. The research was carried out with using the historical-genetic method, ascent from the abstract to the concrete, as well as methods of deduction and induction, generalization method. An analysis of the genesis of economic growth institutional theories, which were aimed at explaining socio-economic phenomena that could not be grasped by the methods of classical, Keynesian and neoclassical theory are made. The general ideological principles of institutionalism, which consist in the fact that economic growth is determined by a set of rules that form the conditions of social production, are revealed. It was clarified that the institutional theory of economic growth involves the analysis of economic phenomena through the prism of non-economic factors – rules, norms, procedures, that regulate the processes of economic change and affect the behavior of economic entities. It is determined that modern concepts of institutionalism in the abstract sense converge on the need for effective political and legal institutions forming, in particular, the establishment and protection of property rights, state policy of protectionism and industrialization, social influence, etc., which are in synthesis with capitalist base, market and state regulation are form the basis of state’s economic growth. The practical value is the substantiation of rationale for the feasibility of applying institutional concepts of economic growth in the process of forming the state economic policy, given that they determine the general principles of economic systems, taking into account multiple socio-economic and ideological factors.

Keywords

economic growth; social institutions; institutional norms; institutionalism; factors of economic growth; accumulation of capital.

JEL classification: B130; B250; O430; DOI: https://doi.org/10.33987/vsed.3-4(78-79).2021.9-18

UD classification: 330.1

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