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Institution Building and Spillovers
Author(s) -
Lane JanErik,
Rohner Dominic
Publication year - 2004
Publication title -
swiss political science review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.632
H-Index - 30
eISSN - 1662-6370
pISSN - 1424-7755
DOI - 10.1002/j.1662-6370.2004.tb00349.x
Subject(s) - institution , spillover effect , work (physics) , property rights , economics , institutional economics , state (computer science) , economic system , public economics , political science , macroeconomics , law , microeconomics , neoclassical economics , mechanical engineering , algorithm , computer science , engineering
This paper investigates the importance of institution building for economic growth in transition economies of Eastern Europe and CIS‐States. Using recent data, it shows that even in a Guardian State, institutions like property rights protection, administration efficiency, and general rule of low matter. They appear to be even more crucial for economic take‐off than standard economic factors like for example macroeconomic policy. Moreover, this paper finds that there are important spillover effects in institution building, and that countries which get one specific institution right, have also better chances to succeed in making other specific institutions work properly.