Special Issue "New Institutional Economics"

A special issue of Economies (ISSN 2227-7099).

Deadline for manuscript submissions: closed (28 February 2019)

Special Issue Editor

Guest Editor
Prof. Dr. Pierre-Guillaume Méon

Solvay Brussels School of Economics and Management, Université libre de Bruxelles (U.L.B.), Avenue Franklin Roosevelt 50, 1050 Bruxelles, Belgium
Website | E-Mail
Interests: political macroeconomics; economic integration

Special Issue Information

Dear Colleagues,

It has been twenty years since Ronald Coase claimed, in the proceedings of the Annual Meeting of the American Economic Association, that “When the majority of economists have changed, mainstream economists will acknowledge the importance of examining the economic system in the way [of new institutional economics] and will claim that they knew it all along.” Twenty years later, new institutional economics has nearly become a household name among “mainstream economists” and enriched economics by taking the institutional context of economic transactions into account.

To take stock of the progress of the field, Economies is inviting contributions for a Special Issue devoted to new institutional economics.

Submissions relating to all the facets of the field are welcome. Topics can cover, but are not limited to, the causes and determinants of democratic transitions, institutional quality, culture, religion, aid, international trade and development, and war. Contributions can be theoretical or empirical and use contemporary or historical data. Critical surveys are also welcome.

Prof. Dr. Pierre-Guillaume Méon
Guest Editor

Manuscript Submission Information

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Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Economies is an international peer-reviewed open access quarterly journal published by MDPI.

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Published Papers (2 papers)

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Research

Open AccessArticle
Arab Countries between Winter and Spring: Where Democracy Shock Goes Next!
Received: 20 July 2018 / Revised: 27 January 2019 / Accepted: 26 February 2019 / Published: 14 March 2019
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Abstract
We examine the role of democracy shocks in the cross-country economic growth processes over a period of five decades since 1960. The recent uprisings that arose independently and spread across the Arab world form the main context of our investigation. We study if [...] Read more.
We examine the role of democracy shocks in the cross-country economic growth processes over a period of five decades since 1960. The recent uprisings that arose independently and spread across the Arab world form the main context of our investigation. We study if (i) a shock to democracy in one country triggers institutional reforms and growth upsurge in the neighbouring countries, and (ii) the magnitude and direction of response to democracy shocks are contingent upon income pathways of countries. To estimate the spillover effects of democracy shocks, we model and estimate growth interdependence among individual countries with similar democratic characteristics. To study the nature of responses of democracy shocks on cross-country growth processes, we build and estimate a Global Vector Autoregression (GVAR) model where we allow countries to be interdependent with regard to bilateral migration and geographical proximity. Using the GVAR model, we also stimulate a positive shock to democracy in Egypt—the most populous Arabic country—and study its impacts on institutional reforms and economic growth in the rest of the Arab World. We find that high and upper-middle income countries are immune to democracy shocks in Egypt, whereas the lower middle and low income countries are susceptible to another revolutionary wave. Full article
(This article belongs to the Special Issue New Institutional Economics)
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Open AccessArticle
Growth Effect of Public Debt: The Role of Government Effectiveness and Trade Balance
Received: 28 June 2018 / Revised: 5 November 2018 / Accepted: 19 November 2018 / Published: 23 November 2018
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Abstract
A growing number of recent works support the idea of debt threshold level (turning point), above which debt starts reducing economic growth. However, estimated threshold varies sharply across studies and gives a little insight into what the optimal level of debt is. The [...] Read more.
A growing number of recent works support the idea of debt threshold level (turning point), above which debt starts reducing economic growth. However, estimated threshold varies sharply across studies and gives a little insight into what the optimal level of debt is. The point is that there is no single turning point that could be applied to all countries and a proper investigation is needed on factors, which shape the debt impact on growth. This study aims to investigate whether debt threshold level depends on government effectiveness (one of the aspects of countries’ institutional quality) and trade balance. Our SYS-GMM estimates (and alternatively OLS and LSDV for robustness check) are based on the unbalanced panel of 152 countries over the period of 1996–2016 and on two strategies: (i) splitting of sample into subsamples according to trade balance and government effectiveness and (ii) including debt and government effectiveness, debt and trade deficit interactions. The obtained results are in line with those which confirm inverted U-shaped debt-growth relationship with clear debt turning point dependence on government effectiveness. However, effective governance is not enough to avoid the negative debt effect. Trade balance seems to be more crucial factor than institutional quality, on which threshold level depends. Full article
(This article belongs to the Special Issue New Institutional Economics)
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