TY  - JOUR
AU  - Engerman,Stanley L.
AU  - Sokoloff,Kenneth L.
TI  - Institutional and Non-Institutional Explanations of Economic Differences
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9989
PY  - 2003
Y2  - September 2003
UR  - http://www.nber.org/papers/w9989
L1  - http://www.nber.org/papers/w9989.pdf
N1  - Author contact info:
Stanley L. Engerman
Department of Economics
University of Rochester
Rochester, NY  14627-0156
Tel: 585/275-3165
Fax: 585/256-2309
E-Mail: s.engerman@rochester.edu

Kenneth L. Sokoloff
Department of Economics
UCLA
405 Hilgard Avenue
Los Angeles, CA  90095-1477
Tel: 310/825-4249
Fax: 310/825-9528
E-Mail: N/A user is deceased
AB  - Although we cannot conceive of processes of economic growth that do not involve institutional change, in this essay we outline some reasons why one should be cautious about grounding a theory of growth on institutions. We emphasize how very different institutional structures have often been found to be reasonable substitutes for each other, both in dissimilar as well as similar contexts. The historical record, therefore, does not seem to support the notion that any particular institution, narrowly defined, is indispensable for growth. Moreover, we discuss how the evidence that there are systematic patterns to the ways institutions evolve undercuts the idea that exogenous change in institutions is what powers growth. Institutions matter, but our thinking of how they matter should recognize that they are profoundly influenced by the political and economic environment, and that if any aspect of institutions is crucial for growth, it is that institutions change over time as circumstances change.
ER  -