Natalia A. Rozinskaya Institutional constructor concept

DOI: 10.38050/2078-3809-2024-16-4-7-21

Abstract

This paper examines two basic types of socio-economic systems - traditional society and society of modern economic growth - from the point of view of the institutions that form and prevail in these systems. It is proposed to consider institutions of stability as defining factors for a traditional society, the main purpose of which is to maintain a certain standard of living for members of society and especially their social status, that is, the existing social order. It is proposed to consider development institutions as determining factors for a society of modern economic growth, the main goal of which is to create motivation in society to increase labor productivity, efficiency, and success in economic and social terms. Particular attention is paid to the concept of society as an institutional constructor/puzzle. Societies are stable if institutions correspond to each other, the level of technology, and geographic location, and, conversely, they become unstable and can begin to change (or collapse) when such correspondence is violated.

Keywords: institutions of stability, institutions of development, institutional constructor/puzzle, traditional society, society of modern economic growth.

JEL: B52, O1.

For citation: Rozinskaya, N. A. (2024) Institutional constructor concept. Scientific Research of Faculty of Economics. Electronic Journal, vol. 16, no. 4, pp. 7-21. DOI: 10.38050/2078-3809-2024-16-4-7-21.

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