A Framework for an Organic Approach for the Analysis of Institutional Transplants in the Economic Context

Abstract

Institutional transplants is the name given to formal institutions which are transferred from one institutional setting to another. They are one of the possible channels for institutional change. The success of an institutional transplant depends on its interaction with its new environment. Previous research, based on the methodology of neoclassical economics (and to some extent - of the new institutional economics), is limited in its ability to predict the success of such transplants. We propose a framework for an organic approach for the analysis of institutional transplants in the economic context, which has a potential to overcome these limitations. This could enable policy-makers to take better decisions when undertaking institutional reforms.

Keywords

• institutions; institutional change; methodology; heterodox approach; institutional reform