Economic Theory Commons^™

Institutions, The State, And Economic Development: An Analysis And Evaluation Of Ha-Joon Chang's Critique Of The Dominant Discourse And His Thoughts On State-Led Development Theory, Luke M. Jackson

Electronic Theses and Dissertations

This paper examines two distinct schools of thought on how to best spur economic activity in developing economies. Mainstream economists, like Hernando De Soto and Douglass North, argue private property rights and free markets, and the institutions which nourish and protect them, are the primary driver of economic growth. Heterodox economists, led by prominent author and economist Ha-Joon Chang, acknowledge institutions play an important role in inducing economic activity but challenge the notion institutions are the primary driver of development. They argue targeted state-led investment and regulation are as important, if not more important, than protecting market freedom and private …