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Institutional transformation and development from an economic transition perspective: the case of Argentina

Published online by Cambridge University Press:  09 May 2019

Áron Perényi Open the ORCID record for Áron Perényi [Opens in a new window] ,
Alexis Esposto  and
Jill Bamforth
Áron Perényi
Affiliation:
Swinburne Business School, Swinburne University of Technology, Hawthorn, Australia
Alexis Esposto
Affiliation:
Swinburne Business School, Swinburne University of Technology, Hawthorn, Australia
Jill Bamforth
Affiliation:
Swinburne Business School, Swinburne University of Technology, Hawthorn, Australia
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Abstract

Economic reforms and political changes often take place simultaneously. The outcomes of reforms in transitional countries depend on the sequence of these changes. Kornai developed his transition framework based on Central and Eastern Europe, and extended it to Asian nations. This article builds on Kornai's model and the institutional dialogue of economic development to construct and apply a model of transformation for Latin America. The aim is to better explain the relationship between institutional transformation and developmental outcomes over time. Our analysis utilises historical information and the views of current political leaders in Argentina. The analysis performed reflects on institutional performance, and evaluates the applicability of the proposed Latin American transition framework in practice. Based on the empirical evidence presented, we argue that economic transition is a path-dependent phenomenon, and that our model explaining the interaction of economic and political changes provides an explanation for the performance of institutional transformation in Argentina.

Keywords

János KornaiArgentinasynchronicityinstitutional transformation
Type
Research Article
Information
Journal of Institutional Economics , Volume 16 , Issue 1 , February 2020 , pp. 83 - 104
Copyright
Copyright © Millennium Economics Ltd 2019 

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