Endogenous institution formation under a catching-up strategy in developing countries / Justin Yifu Lin, Zhiyun Li
"This paper explores endogenous institution formation under a catching-up strategy in developing countries. Since the catching-up strategy is normally against the compartive advantages of the developing countries, it can not be implemented through laissez-faire market mechanisms, and a governme...
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| Autores principales: | Lin, Justin Yifu |
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| Autores Corporativos: | World Bank |
| Otros Autores: | Li, Zhiyun |
| Formato: | Online-Resource |
| Lenguaje: | English |
| Publicado: | [Washington, D.C] : World Bank, 2008 |
| Colección: | Policy research working paper
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| Materias: | |
| Acceso en línea: | URL des Erstveröffentlichers |
| Sumario: | "This paper explores endogenous institution formation under a catching-up strategy in developing countries. Since the catching-up strategy is normally against the compartive advantages of the developing countries, it can not be implemented through laissez-faire market mechanisms, and a government needs to establish nonmarket institutions to implement the strategy. In a simple two-sector model, the authors show that an institutional complex of price distortion, output control, and a directive allocation system is sufficient to implement the best allocation for the catching-up strategy. Furthermore, removing any of the three components will make it no longer implementable. The analysis also compares the best allocation and prices under the catching-up strategy with their counterparts under no distortions. The results of this paper provide important implications for understanding the institution formation in the developing countries that were pursuing a catching-up strategy after World War II. "--World Bank web site |
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| Notas: | Includes bibliographical references. - Title from PDF file as viewed on 5/8/2009 Erscheinungsjahr in Vorlageform:[2008] Weitere Ausgabe: Lin, Justin Yifu: Endogenous institution formation under a catching-up strategy in developing countries |
| Descripción Física: | 1 Online-Ressource (41 Seiten) |
