Publication:
Endogenous Institution Formation under a Catching-up Strategy in Developing Countries

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dc.contributor.authorLi, Zhiyun
dc.contributor.authorLin, Justin Yifu
dc.date.accessioned2012-05-21T20:54:19Z
dc.date.available2012-05-21T20:54:19Z
dc.date.issued2008-12
dc.description.abstractThis 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.en
dc.identifierhttp://documents.worldbank.org/curated/en/2008/12/10091417/endogenous-institution-formation-under-catching-up-strategy-developing-countries
dc.identifier.doi10.1596/1813-9450-4794
dc.identifier.urihttps://hdl.handle.net/10986/6291
dc.languageEnglish
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; No. 4794
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCUMULATION OF CAPITAL
dc.subjectAGRICULTURE
dc.subjectALLOCATION OF CAPITAL
dc.subjectBENCHMARK
dc.subjectBUDGET CONSTRAINT
dc.subjectBUDGET CONSTRAINTS
dc.subjectCAPITAL ACCUMULATION
dc.subjectCAPITAL ALLOCATION
dc.subjectCAPITAL GOODS
dc.subjectCAPITAL INCOME
dc.subjectCAPITAL INVESTMENT
dc.subjectCAPITAL NEEDS
dc.subjectCOMMERCIAL CONTRACTS
dc.subjectCOMMODITIES
dc.subjectCOMPARATIVE ADVANTAGES
dc.subjectCOMPETITIVE MARKETS
dc.subjectCONSUMER DEMAND
dc.subjectCONSUMPTION DECISIONS
dc.subjectCONSUMPTION GOOD
dc.subjectCONSUMPTION GOODS
dc.subjectCONTROL VARIABLE
dc.subjectCONTROL VARIABLES
dc.subjectCONTROLLED PRICES
dc.subjectDEMAND FUNCTION
dc.subjectDEMAND FUNCTIONS
dc.subjectDEPRESSION
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING COUNTRY
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDEVELOPMENT STRATEGIES
dc.subjectDEVELOPMENT STRATEGY
dc.subjectDISTORTIONS
dc.subjectECONOMETRICS
dc.subjectECONOMIC CONSTRAINTS
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC ENVIRONMENT
dc.subjectECONOMIC ENVIRONMENTS
dc.subjectECONOMIC POLICY
dc.subjectECONOMIC POWER
dc.subjectECONOMIC REFORM
dc.subjectECONOMIC SIZE
dc.subjectECONOMIC STRUCTURE
dc.subjectEQUILIBRIUM
dc.subjectEQUILIBRIUM PRICE
dc.subjectEQUILIBRIUM PRICES
dc.subjectEQUILIBRIUM VALUE
dc.subjectEQUILIBRIUM VALUES
dc.subjectEXCESS DEMAND
dc.subjectEXCESS SUPPLY
dc.subjectEXPORTS
dc.subjectFACTOR PRICES
dc.subjectFOREIGN TRADE
dc.subjectFREE MARKET
dc.subjectFREE MARKET ECONOMY
dc.subjectGDP
dc.subjectGOVERNMENT INTERVENTION
dc.subjectGOVERNMENT OWNERSHIP
dc.subjectGROWTH RATES
dc.subjectIMPORT
dc.subjectINCOME
dc.subjectINCOME LEVEL
dc.subjectINCOME LEVELS
dc.subjectINCOMES
dc.subjectINSTITUTIONAL CONSTRAINTS
dc.subjectINTEREST RATE
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL ECONOMY
dc.subjectLESS DEVELOPED COUNTRIES
dc.subjectLIVING STANDARDS
dc.subjectMANUFACTURING INDUSTRIES
dc.subjectMARGINAL COST
dc.subjectMARGINAL REVENUE
dc.subjectMARGINAL UTILITY
dc.subjectMARGINAL UTILITY OF CONSUMPTION
dc.subjectMARKET ECONOMIES
dc.subjectMARKET EQUILIBRIUM
dc.subjectMARKET INTEREST
dc.subjectMARKET INTEREST RATES
dc.subjectMARKET MECHANISM
dc.subjectMARKET MECHANISMS
dc.subjectMARKET-CLEARING LEVEL
dc.subjectMARKET-CLEARING LEVELS
dc.subjectMULTIPLIERS
dc.subjectOPTIMAL ALLOCATION
dc.subjectOPTIMAL ALLOCATIONS
dc.subjectOUTPUT OF CAPITAL
dc.subjectOUTPUTS
dc.subjectPERFECT COMPETITION
dc.subjectPOLITICAL ECONOMY
dc.subjectPOLITICAL REGIME
dc.subjectPRICE CONTROL
dc.subjectPRICE DISCRIMINATION
dc.subjectPRICE DISTORTION
dc.subjectPRICE LEVELS
dc.subjectPRICE OF GOOD
dc.subjectPRICE REGULATION
dc.subjectPRIMARY COMMODITIES
dc.subjectPRIVATE MARKET
dc.subjectPRODUCTION COSTS
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTION FUNCTIONS
dc.subjectRAPID DEVELOPMENT
dc.subjectRAPID ECONOMIC GROWTH
dc.subjectRAPID INDUSTRIALIZATION
dc.subjectRELATIVE PRICE
dc.subjectRELATIVE PRICES
dc.subjectRETURNS
dc.subjectSALE
dc.subjectSHADOW PRICES
dc.subjectSOCIALIST ECONOMIES
dc.subjectSUBSTITUTION
dc.subjectSURPLUS
dc.subjectTOTAL OUTPUT
dc.subjectTRADE REGIMES
dc.subjectTRADING
dc.subjectUTILITY FUNCTION
dc.subjectWAGES
dc.subjectWELFARE ECONOMICS
dc.titleEndogenous Institution Formation under a Catching-up Strategy in Developing Countriesen
dspace.entity.typePublication
okr.crossref.titleEndogenous Institution Formation Under A Catching-Up Strategy In Developing Countries
okr.date.doiregistration2025-04-10T12:22:07.053695Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2008/12/10091417/endogenous-institution-formation-under-catching-up-strategy-developing-countries
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeFinance and Markets
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.guid870141468313784185
okr.identifier.doi10.1596/1813-9450-4794
okr.identifier.externaldocumentum000158349_20081210100926
okr.identifier.internaldocumentum10091417
okr.identifier.reportWPS4794
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2008/12/10/000158349_20081210100926/Rendered/PDF/WPS4794.pdfen
okr.topicFinance and Financial Sector Development::Currencies and Exchange Rates
okr.topicEconomic Theory and Research
okr.topicMacroeconomics and Economic Growth::Markets and Market Access
okr.topicPrivate Sector Development::Emerging Markets
okr.topicFinance and Financial Sector Development::Debt Markets
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublication6f9860c3-5c17-54f1-92fb-9f5055cc0038
relation.isAuthorOfPublication.latestForDiscovery6f9860c3-5c17-54f1-92fb-9f5055cc0038
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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