The Quality of Formal Institutional Subsystems of OECD Countries

• Autorzy: Mateusz Borkowski
• Języki publikacji: EN

Abstrakty

EN

Motivation: Institutions are the core element of every economic system. Institutions condition all economic, social and political relations within the economy. They are universal. There is no doubt that a non-institutional analysis of contemporary economies is incomplete. The subject of this article are subsystems of formal institutions of OECD countries. This paper is an attempt to supplement contemporary economics with a structural model of formal institutional environments. Aim: The purpose of the article is to assess the quality of formal institutions of OECD economies and to identify the most important groups of institutions that shape the formal institutional environment of modern economies. A research hypothesis was adopted, stating that the quality of property rights has the strongest positive impact on the quality of formal institutional subsystems. Results: The analysis of the literature allowed the indication of the importance of (especially formal) institutions in the economy. The constructed soft model allowed for positive hypothesis verification. As it turns out, the quality of formal institutions is positively influenced by all three separate groups of formal institutions, but institutions of property rights are of the greatest importance. (original abstract)

Słowa kluczowe

EN

Institutional economics; Institutions; Soft modelling

PL

Ekonomia instytucjonalna; Instytucje; Modelowanie miękkie

• Czasopismo: Ekonomia i Prawo
• Rocznik: 2021
• Tom: 20
• Numer: nr 1
• Strony: 21--44

Twórcy

autor

Mateusz Borkowski

• University of Bialystok

Bibliografia

• Acemoglu, D. (2009). Introduction to modern economic growth. Princeton: Princeton University Press.
• Aktan, C.C. (2016). Regulatory public policies: an introductory survey. International Journal of Economics and Finance Studies, 8.
• Akter, S., D'Ambra, J., & Ray, P. (2011). An evaluation of PLS based complex models: the roles of power analysis, predictive relevance and GoF index. Proceedings of the 17th Americas Conference on Information Systems (AMCIS2011). Detroit: Association for Information Systems.
• Aoki, M. (2000). What are institutions: how should we approach them. Stanford University Working Papers, 15.
• Balcerzak, A.P. (2020). Quality of institutions in the European Union countries: application of TOPSIS based on entropy measure for objective weighting. Acta Polytechnica Hungarica, 17(1). doi:10.12700/APH.17.1.2020.1.6.
• Bardhan, P. (2005). Institutions matter, but which ones. Economics of Transition and Institutional Change, 13(3). doi:10.1111/j.1468-0351.2005.00229.x.
• Borkowski, M. (2020). Economic security of Polish Voivodeships: measuring the concept. Studia Prawno-Ekonomiczne, 114. doi:10.26485/SPE/2020/114/11.
• Boudreaux, K. (2005). The role of property rights as an institution: implications for development policy. Mercatus Policy Series Policy Primer, 2. doi:10.2139/ssrn.1336664.
• Boudreaux, K., & Aligica, P.D. (2008). Paths to property: approaches to institutional change in international development. London: Institute of Economic Affairs.
• Cao, L. (2012). Informal institutions and property rights. Faculty Publications, 1427.
• Chang, H.-J., & Evans, P. (2005). The role of institutions in economic change. In S. De Paula, & G. Dymski (Eds.), Reimagining growth: towards a renewal of development theory. London: Zed.
• Chin, W.W. (2010). How to write up and report PLS analyses. In V. Esposito Vinzi, W. Chin, J. Henseler, & H. Wang (Eds.), Handbook of partial least squares. Berlin-Heidelberg: Springer. doi:10.1007/978-3-540-32827-8_29.
• Ciborowski, R.W., & Skrodzka, I. (2019). International technology transfer, innovation and economic development of European Union countries. European Research Studies Journal, 22. doi:10.35808/ersj/1481.
• Ciborowski, R.W., Gruszewska, E., & Meredyk, K.S. (2017). Selected problems of economic theory. Optimum. Studia Ekonomiczne, 5(89). doi:10.15290/ose.2017.05.89.01.
• Commons, J.R. (1924). Legal foundations of capitalism. New York: Macmillan.
• Davison, A., & Hinkley, D. (1997). Bootstrap methods and their application. Cambridge: Cambridge University Press. doi:10.1017/CBO9780511802843.
• De Rosa, D., & Malyshev, N. (2008). Regulatory institutions: a blueprint for the Russian Federation. OECD Working Paper, 10.doi: 10.2139/ssrn.1141547.
• Deakin, S., Gindis, D., Hodgson, G.M., Huang, K., & Pistor, K. (2017). Legal institutionalism: capitalism and the constitutive role of law. Journal of Comparative Economics, Institutions and Economic Change, 45(1). doi:10.1016/j.jce.2016.04.005.
• Demsetz, H. (1974). Toward a theory of property rights. In C. Gopalakrishnan (Ed.), Classic papers in natural resource economics. London: Palgrave Macmillan. doi:10.1057/9780230523210_9.
• Dicey, A.V. (1979). An introduction to the study of the law of the constitution. London: Palgrave Macmillan. doi:10.1007/978-1-349-17968-8.
• Dobler, C. (2011). The impact of formal and informal institutions on economic growth. Frankfurt am Main-Berlin-Bern-Bruxelles-New York-Oxford-Wien: Peter Lang. doi:10.3726/978-3-653-00883-8.
• Dworkin, R.M. (1967). The model of rules. The University of Chicago Law Review, 35(1). doi:10.2307/1598947.
• Esposito Vinzi, V., Trinchera, L., & Amato, S. (2010). PLS path modeling: from foundations to recent developments and open issues for model assessment and improvement. In V. Esposito Vinzi, W. Chin, J. Henseler, & H. Wang (Eds.), Handbook of partial least squares. Berlin-Heidelberg: Springer. doi:10.1007/978-3-540-32827-8_3.
• Faundez, J. (2016). Douglass North's theory of institutions: lessons for law and development. Hague Journal on the Rule of Law, 8(2). doi:10.1007/s40803-016-0028-8.
• Ferrara, A.R. & Nisticò, R. (2019). Does institutional quality matter for multidimensional well-being inequalities: insights from Italy. Social Indicators Research, 145(3). doi:10.1007/s11205-019-02123-x.
• Fiedor, B. (2015). Instytucje formalne i nieformalne w kształtowaniu trwałego rozwoju. Studia i Prace Wydziału Nauk Ekonomicznych i Zarządzania Uniwersytetu Szczecińskiego, 40. doi:10.18276/sip.2015.40/2-07.
• Fraser Institute. (2020). Economic freedom. Retrieved 20.03.2021 from https://www.fraserinstitute.org.
• Gancarczyk, M. (2002). Instytucja a organizacja w nowej ekonomii instytucjonalnej. Gospodarka Narodowa, 176(5-6). doi:10.33119/GN/113844.
• Geisser, S. (1974). A predictive approach to the random effect model. Biometrika, 61(4). doi:10.2307/2334290.
• Gruszewska, E. (2011). Dezintegracja w zinstytucjonalizowanym świecie. Ekonomia i Prawo. Economics and Law, 7(1). doi:10.12775/eip.2011.003.
• Gruszewska, E. (2013a). Instytucje a proces tworzenia kapitału w Polsce. Białystok: Uniwersytet w Białymstoku.
• Gruszewska, E. (2013b). Instytucje nieformalne w teorii F.A. Hayeka. Ekonomia. Economics, 4(25).
• Gruszewska, E. (2017). Instytucje formalne i nieformalne: skutki antynomii. Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu, 493. doi:10.15611/pn.2017.493.03.
• Gruszewska, E. (2020). Ekonomiczne aspekty praw własności: perspektywa instytucjonalna. In R. Przygodzka, & E. Gruszewska (Eds.), Instytucjonalne i strukturalne aspekty rozwoju rolnictwa i obszarów wiejskich: księga poświęcona pamięci dr hab. Adama Sadowskiego Profesora Uniwersytetu w Białymstoku. Białystok: Uniwersytet w Białymstoku. doi:10.15290/isarrow.2020.01.
• Hair, Jr., J.F., Hult, G.T.M., Ringle, C.M., & Sarstedt, M. (2017). A primer on partial least squares strucutal equation modeling (PLS-SEM). Los Angeles-London-New Delhi-Singapore-Washington-Melbourne: SAGE.
• Hayek, F.A. (1978). Law, legislation and liberty: rules and order. Chicago: University of Chicago Press.
• Heritage Foundation. (2020). Index of economic freedom. Retrieved 20.03.2021 from https://www.heritage.org.
• Hodgson, G.M. (2006). What are institutions. Journal of Economic Issues, 40(1). doi:10.1080/00213624.2006.11506879.
• Höpner, M. (2005). What connects industrial relations and corporate governance: explaining institutional complementarity. Socio-Economic Review, 3(2). doi:10.1093/SER/mwi014.
• Howard-Hassmann, R.E. (2013). Reconsidering the right to own property. Journal of Human Rights, 12(2). doi:10.1080/14754835.2013.784667.
• Iwanek, M., & Wilkin, J. (1997). Instytucje i instytucjonalizm w ekonomii. Warszawa: Uniwersytet Warszawski.
• Jütting, J. (2003). Institutions and development: a critical review. OECD Development Centre Working Papers, 210. doi:10.1787/341346131416.
• Kaufmann, D., Kraay, A., & Mastruzzi, M. (2011). The worldwide governance indicators: methodology and analytical issues. Hague Journal on the Rule of Law, 3(2). doi:10.1017/S1876404511200046.
• Koroso, N.H., Zevenbergen, J.A., & Lengoiboni, M. (2019). Land institutions' credibility: analyzing the role of complementary institutions. Land Use Policy, 81. doi:10.1016/j.landusepol.2018.11.026.
• Kunčič, A. (2014), Institutional quality dataset. Journal of Institutional Economics, 10(1). doi:10.1017/S1744137413000192.
• Kwaśnicki, W. (2009). Rządy prawa a rozwój gospodarczy. Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu. Ekonomia, 3(74).
• Levi-Faur, D. (2010). Regulation & regulatory governance. Jerusalem Papers in Regulation & Governance, 1.
• Lohmöller, J.-B. (1989). Latent variable path modeling with partial least squares. Berlin: Physica-Verlag. doi:10.1007/978-3-642-52512-4.
• Marcinkiewicz, J. (2013). Procesy globalizacji a poziom rozwoju Giełdy Papierów Wartościowych w Warszawie: model miękki. Zarządzanie i Finanse, 11(1).
• Medina-Morala, E., & Montes-Gan, V.J. (2018). Economic freedom, good governance and the dynamics of development. Journal of Applied Economics, 21(1). doi:10.1080/15140326.2018.1526873.
• Mierzyńska, D. (2011). Socioeconomic well-being: soft model. Acta Universitatis Lodziensis. Folia Oeconomica, 255.
• Miller, R.G. (1974). The jackknife: a review. Biometrika, 61(1). doi:10.2307/2334280.
• Misiewicz, E.I. (2013). Działalność innowacyjna a rozwój gospodarczy województw Polski. Zarządzanie i Finanse, 3(2).
• Misiewicz, E.I., Roszkowska, E., & Rogowski, J. (2019). Ocena poziomu ładu gospodarczego województw Polski w 2015 r. Optimum. Economic Studies, 3(97). doi:10.15290/oes.2019.03.97.01.
• Monecke, A., & Leisch, F. (2012). semPLS: structural equation modeling using partial least squares. Journal of Statistical Software, 48(3). doi:10.18637/jss.v048.i03.
• Murphy, R. (2016). A comment on "Measuring economic freedom: a comparison of two major sources". Journal of Private Enterprise, 31(3).
• Myrdal, G. (1978). Institutional economics. Journal of Economic Issues, 12(4). doi:10.1080/00213624.1978.11503577.
• North, D.C. (1990). Institutions, institutional change, and economic performance. Cambridge: Cambridge University Press. doi:10.1017/CBO9780511808678.
• North, D.C. (1991). Institutions. The Journal of Economic Perspectives, 5(1). doi:10.1257/jep.5.1.97.
• North, D.C. (1994a). Economic performance through time. The American Economic Review, 84(3).
• North, D.C. (1994b). The historical evolution of polities. International Review of Law and Economics, 14(4). doi:10.1016/0144-8188(94)90022-1.
• Ogus, A. (2002). Regulatory institutions and structures. Annals of Public and Cooperative Economics, 73(4). doi:10.1111/1467-8292.00208.
• Ostrom, E. (2003). How types of goods and property rights jointly affect collective action. Journal of Theoretical Politics, 15(3). doi:10.1177/0951692803015003002.
• Ott, J. (2018). Measuring economic freedom: better without size of government. Social Indicators Research, 135(2). doi:10.1007/s11205-016-1508-x.
• Owczarczuk, M. (2013). Property rights as a factor of foreign direct investment: the case of Poland. Oeconomia Copernicana, 4(2). doi:10.12775/OeC.2013.015.
• Perło, D. (2014). Modelowanie zrównoważonego rozwoju regionów. Białystok: Trans Humana.
• Perło, D., & Roszkowska, E. (2017). The application of soft modelling and TOPSIS method for the analysis of competitiveness of companies in urban functional areas in Poland. Optimum. Studia Ekonomiczne, 5(89). doi:10.15290/ose.2017.05.89.05.
• Procházka, P., & Čermáková, K. (2015). Influence of selected institutional factors on the economic growth: case open markets. Procedia Economics and Finance, 30. doi:10.1016/S2212-5671(15)01319-2.
• Property Rights Alliance. (2020). International property rights index. Retrieved 20.03.2021 from https://www.propertyrightsalliance.org.
• Ratajczak, M. (2011). Popularność ekonomii instytucjonalnej: moda czy trwała zmiana. Zeszyty Naukowe. Polskie Towarzystwo Ekonomiczne, 9.
• Riker, W.H., & Ordeshook, P.C. (1973). An introduction to positive political theory. Englewood Cliffs: Prentice-Hall.
• Rocki, M. (1998). Miękkie wskaźniki stanu gospodarki. Prace i Materiały Instytutu Rozwoju Gospodarczego SGH, 60.
• Rodrik, D. (2007). One economics, many recipes: globalization, institutions, and economic growth. Princeton-Oxford: Princeton University Press. doi:10.2307/j.ctvcm4jbh.
• Rodrik, D., Subramanian, A., & Trebbi, F. (2004). Institutions rule: the primacy of institutions over geography and integration in economic development. Journal of Economic Growth, 9. doi:10.1023/B:JOEG.0000031425.72248.85.
• Rogowski, J. (1990). Modele miękkie: teoria i zastosowanie w badaniach ekonomicznych. Białystok: Dział Wydawnictw Filii UW.
• Rossmanith, A. (2019). Praworządność w perspektywie zasady podtrzymywania oraz pogłębiania komunikacji między ludźmi. Acta Universitatis Lodziensis. Folia Iuridica, 87. doi:10.18778/0208-6069.87.09.
• Sanchez, G. (2013). PLS path modeling with R. Retrieved 20.03.2021 from http://www.gastonsanchez.com.
• Sanchez, G., Trinchera, L., & Russolillo, G. (2014). Introduction to the R package plspm. Retrieved 20.03.2021 from https://mran.microsoft.com.
• Schlager, E., & Ostrom, E. (1992). Property rights regimes and natural resources: a conceptual analysis. Land Economics, 68(3). doi:10.2307/3146375.
• Sellin, N., & Versand, O. (1995). Partial least squares modeling in research on educational achievement. In W. Bos, & R.H. Lehmann (Eds.), Reflections on educational achievement: papers in honour of T. Neville Postlethwaite. New York: Waxmann Münster.
• Shchegolev, I., & Hayat, A. (2018). Institutional quality, governance and economic growth: evidence from former Soviet countries. Journal of Advances in Economics and Finance, 3(4). doi:10.22606/jaef.2018.34002.
• Skrodzka, I. (2015). Kapitał ludzki polskich województw: koncepcja pomiaru. Białystok: Uniwersytet w Białymstoku.
• Skrodzka, I. (2016). Knowledge-based economy in the European Union: cross-country analysis. Statistics in Transition, 17(2). doi:10.21307/stattrans-2016-019.
• Stiglitz, J.E. (2000). Economics of the Public Sector, New York: W.W. Norton & Company.
• Stone, M. (1974). Cross-validatory choice and assessment of statistical predictions. Journal of the Royal Statistical Society. Series B (Methodological), 36(2). doi:10.1111/j.2517-6161.1974.tb00994.x.
• Tajima, K. (2007). The theory of institutions and collective action in Adam Smith's Theory of Moral Sentiments. The Journal of Socio-Economics, 36(4). doi:10.1016/j.socec.2006.12.015.
• Veblen, T.B. (1924). Absentee ownership and business enterprise in recent times: the case of America. London: Allen & Unwin.
• Veblen, T.B. (2016). The theory of the leisure class. Scotts Valley: CreateSpace Independent Publishing Platform.
• Vitola, A., & Šenfelde, M. (2015). The role of institutions in economic performance. Verslas: Teorija ir Praktika, 16(3). doi:10.3846/btp.2015.498.
• Voigt, S. (2013). How (not) to measure institutions. Journal of Institutional Economics, 9(1). doi:10.1017/S1744137412000148.
• Wang, S. (2002). Defective institutions and their consequences: lesson from China, 1980-1993. Communist and Post-Communist Studies, 35(2). doi:10.1016/S0967-067X(02)00004-1.
• Wilkin, J. (2016). Instytucjonalne i kulturowe podstawy gospodarowania. Warszawa: Scholar.
• Williamson, C. (2011). The two sides of De Soto: property rights, land titling, and development. In E. Chamlee-Wright (Ed.), The annual proceedings of the wealth and well-being of nations. Beloit: Beloit College Press.
• Williamson, O.E. (1985). The economic insitutions of capitalism: firms, markets, relational contrating. New York: Free Press.
• Williamson, O.E. (2000). The new institutional economics: taking stock, looking ahead. Journal of Economic Literature, 38(3). doi:10.1257/jel.38.3.595.
• Windholz, E., & Hodge, G. (2012). Conceptualising social and economic regulation: implications for modern regulators and regulatory activity. Monash University Law Review, 2(38).
• Wold, H. (1980a). Model construction and evaluation when theoretical knowledge is scarce. In J. Kmenta, & J.B. Ramsey (Eds.), Evaluation of econometric models. New York: Academic Press.
• Wold, H. (1980b). Soft modelling: intermediate between traditional model building and data analysis. Banach Center Publications, 6(1).
• World Bank. (2020) The worldwide governance indicators (WGI). Retrieved 20.03.2021 from https://info.worldbank.org.
• Wu, W.-L. (2017). Institutional quality and air pollution: international evidence. International Journal of Business and Economics, 16(1).
• Zhuravlev, S. (2017). Law as a method for constituting (defining) social life in the successful society. The European Proceedings of Social & Behavioral Sciences, doi:10.15405/epsbs.2017.01.101.

Identyfikatory

DOI

10.12775/EiP.2021.002