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Institutions, diseases, and economic progress: a unified framework

Published online by Cambridge University Press:  01 April 2009

SAMBIT BHATTACHARYYA
SAMBIT BHATTACHARYYA*
Affiliation:
Arndt-Corden Division of Economics, Research School of Pacific and Asian Studies, The Australian National University, Canberra, Australia
*
*Email: sambit.bhattacharyya@anu.edu.au
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Abstract

The sharp division between the ‘institutions view’ and the ‘disease view’ has been one of the distinctive features of the ‘root causes of economic progress’ literature. Based on evidence from cross-national data, the ‘institutions school’ claims that institutions are the only root cause of development, whereas the ‘disease school’ claims that diseases are also equally important. In this paper, I contribute to this literature by proposing a unified structure to marry the two conflicting views. I argue that overcoming diseases are of prime importance at an early stage of economic development, whereas institutions are more important at a later stage. I find support for this hypothesis in the development history literature on Africa, India, China and the Americas.

Type
Research Article
Information
Journal of Institutional Economics , Volume 5 , Issue 1 , April 2009 , pp. 65 - 87
Copyright
Copyright © The JOIE Foundation 2009

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