Better Rules or Stronger Communities? On the Social Foundations of Institutional Change and Its Economic Effects

By A. Rodríguez‐Pose, M. Storper. 2006

288 citations recorded by the source corpus.

Abstract Much of the literature on the impact of institutions on economic development has focused on the tradeoffs between society and community as mutually opposed forms of institutional coordination. On the one hand, sociologists, geographers, and some economists have stressed the positive economic externalities that are associated with the development of associational or group life. Most economists, in contrast, hold that the development of communities may be a second-best solution to the development of formal institutions or even have negative effects, such as the promotion of rent-seeking behavior and principal-agent problems. Societal institutions—such as clear, transparent rules and enforcement mechanisms—are held to be universally positive for development. But there are no real-world cases in which only one of the two exists;society and community are always and everywhere in interaction. This interaction, however, has attracted little attention. In this article, society and community are conceived of as complementary forms of organization whose relative balance and interaction shape the economic potential of every territory. Changes in the balance between community and society take place constantly and affect the medium- and long-run development prospects of every territory. The depth and the speed of change depend on a series of factors, such as starting points in the interaction of society and community, the sources and dynamics of change, and the conflict-solving capacities of the preexisting situation.

Subfields: Demography, Economics and Econometrics, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/0c07896405ed64e72614ad807b26042b1207e90a

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Citations in the corpus

Local entrepreneurial resilience and culture: the role of social values in fostering economic recovery (2015, background): “Finally, Rodríguez-Pose and Storper (2006) note the importance of adherence to social values and rules for coordination purposes.”
Does institutional quality matter for trade? Institutional conditions in a sectoral trade framework (2018, background): “It has been widely acknowledged that local institutional conditions shape growth trajectories in different parts of the world (Acemoglu et al., 2005; Rodríguez-Pose and Storper, 2006).”
Transformation of regional innovation systems : from old legacies to new development paths (2012, background): “Furthermore, it is not only the “hard facts” mentioned above but also the “soft” institutions which matter (Hodgson, 1988; Rodriguez-Pose and Storper, 2006).”
The logic of economic development: a definition and model for investment (2016, background): “The argument that advantage is due to capacity investments that yield a long-term return is gaining acceptance (Rodríguez-Pose and Storper, 2006).”
Cultural Diversity, Innovation, and Entrepreneurship: Firm-level Evidence from London (2013, background): “Coethnic networks may reduce information and communication costs because knowledge is exchanged through groups with greater mutual understanding and trust (Docquier and Rapoport 2011; Rodríguez-Pose and Storper 2006).”
Trinity of change agency, regional development paths and opportunity spaces (2020, background): “In regional development studies, institutions are seen as a set of rules, regulations and constraints, on the one hand, and organizations in the form of economic, political, social and educational bodies, on the other hand (Storper, 1997; Rodrı́guez-Pose and Storper, 2006).”
Institutional change in economic geography (2014, background): “the national context), for instance, are decisive in understanding why some places grow faster than others (Farole et al., 2010; Rodrı́guez-Pose and Storper, 2006; Storper, 2004).”
Quality of Government and the Returns of Investment: Examining the Impact of Cohesion Expenditure in European Regions (2015, background): “Places with weak and/or inefficient institutions suffer from a variety of problems, which can range from pervasive corruption, rent-seeking, insider–outsider problems, clientelism and nepotism to principal agent or impacted information problems (RODRÍGUEZ-POSE and STORPER, 2006).”
Recent research on competitiveness and clusters: what are the implications for regional policy? (2013, background): “…on regions has already drilled done significantly further, differentiating a range of institutional dimensions that matter separately (for example, Rodríguez-Pose and Storper, 2006). by guest on June 4, 2013 http://cjres.oxfordjournals.org/ D ow nloaded from Page 5 of 16 Overall, the recent…”
Same difference? Minority ethnic inventors, diversity and innovation in the UK (2015, background): “Social networks offer their members higher social capital and trust, lowering transaction costs and risk, and helping ideas flow within the group (Rodríguez-Pose and Storper, 2006; Kaiser et al., 2011).”