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analytical developments in pursuing a Grand Theory for why some countries are rich and others poor. Design … limitations of neoclassical economic theory to explain economic growth and social change. Incorporating transaction costs, the … explaining economic performance. Originality/value In the early 1970s, North adopted a naive theory of institutions and property …
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Social capital is defined as mutual trust. It is related to production by a key hypothesis: social capital determines how easily people work together. An easy-to-use proxy (Putnam's Instrument) is the density of voluntary organizations. Social capital might be a new production factor which must...
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