Economic Growth and Institutional Coherence

Pál Czeglédi

doi:10.62374/xq4npa59

Authors

Pál Czeglédi Department of Economics, University of Debrecen

DOI:

https://doi.org/10.62374/xq4npa59

Keywords:

entrepreneurial theory, interventionist theory, regulation, economic development

Abstract

The paper aims at integrating the Lachmannian concept of institutional coherence and flexibility into the Austrian, entrepreneurial theory of economic growth. Using this as a general framework together with the Misesian interventionist theory, it explains some general features of the relationship between regulation and economic growth. The paper argues that as regulatory institutions have a restrictive effect on the entrepreneurial process of the market, the enforcement of these rules is a crucial factor in determining the extent and the way countries shape their regulatory environment. By this the paper identifies a channel through which enforcement contributes to economic development.

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