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Informal Institutions And Economic Performance

Author

Listed:
  • Ionel Bostan
  • Flavian Clipa
  • Raluca Irina Clipa

Abstract

Using the critical analysis of the literature,the paper brings into focus the role of informal institutions on economic performance. The main conclusion drawn from the analysis is that economic performance is structured on the optimal functioning of institutional arrangements in which informal institutions are of particular importance by catalyzing decrease transaction costs, requiring judicious contracts, in order to promote a climate of trust between economic and the entire society.

Suggested Citation

  • Ionel Bostan & Flavian Clipa & Raluca Irina Clipa, 2016. "Informal Institutions And Economic Performance," Knowledge Horizons - Economics, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 8(2), pages 53-58, June.
    • Handle: RePEc:khe:journl:v:8:y:2016:i:2:p:53-58
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    References listed on IDEAS

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    1. Larysa Tamilina & Natalya Tamilina, 2014. "Heterogeneity in Institutional Effects on Economic Growth: Theory and Empirical Evidence," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 11(2), pages 205-249, December.
    2. de Haan, Jakob & Sturm, Jan-Egbert, 2000. "On the relationship between economic freedom and economic growth," European Journal of Political Economy, Elsevier, vol. 16(2), pages 215-241, June.
    3. La Porta, Rafael, et al, 1997. "Trust in Large Organizations," American Economic Review, American Economic Association, vol. 87(2), pages 333-338, May.
    4. Konrad Hagedorn, 2015. "Can the Concept of Integrative and Segregative Institutions Contribute to the Framing of Institutions of Sustainability?," Sustainability, MDPI, vol. 7(1), pages 1-28, January.
    5. Claudia Williamson, 2009. "Informal institutions rule: institutional arrangements and economic performance," Public Choice, Springer, vol. 139(3), pages 371-387, June.
    6. Chen, Yangyang & Dou, Paul Y. & Rhee, S. Ghon & Truong, Cameron & Veeraraghavan, Madhu, 2015. "National culture and corporate cash holdings around the world," Journal of Banking & Finance, Elsevier, vol. 50(C), pages 1-18.
    7. Tamilina, Larysa & Tamilina, Natalya, 2014. "Heterogeneity in Institutional Effects on Economic Growth: Theory and Empirical Evidence," MPRA Paper 63170, University Library of Munich, Germany.
    8. Popov, Alexander & Roosenboom, Peter, 2013. "Venture capital and new business creation," Journal of Banking & Finance, Elsevier, vol. 37(12), pages 4695-4710.
    9. Algan, Yann & Cahuc, Pierre, 2014. "Trust, Growth, and Well-Being: New Evidence and Policy Implications," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 2, pages 49-120, Elsevier.
    10. Wu, Wenfeng & Firth, Michael & Rui, Oliver M., 2014. "Trust and the provision of trade credit," Journal of Banking & Finance, Elsevier, vol. 39(C), pages 146-159.
    11. Yann Algan & Pierre Cahuc, 2013. "Trust and Growth," Annual Review of Economics, Annual Reviews, vol. 5(1), pages 521-549, May.
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    Cited by:

    1. Grzegorz Olczyk, 2019. "Elements of economic culture as informal institutions in the economic development of Germany," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 18(2), pages 233-244, June.

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    More about this item

    Keywords

    Informal institutions; trust; transaction cost; economic performance;
    All these keywords.

    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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