INSTITUTIONS, TRANSACTION COSTS AND ECONOMIC GROWTH

Authors

  • DOUGLASS C. NORTH

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    • *The author wishes to thank Lee Benham, Elisabeth Case, Ken Koford, Donald McCloskey, Kenneth Shepsle, John Wallis and Barry Weingast for their comments on an earlier draft of this essay. The original version of this paper was prepared for a conference on “The Political Economy of Poverty, Equity, and Growth” sponsored by the World Bank in Cancun, Mexico, December, 1985.


Abstract

This essay develops a theoretical framework which explores the historical obstacles to economic growth. These obstacles are examined in the context of the political/economic institutional framework of economies in history and consequent transaction costs that determine economic performance and growth. The essay concludes with specific suggestions for the study of economic growth.

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