Institutions' complementarity and coevolution

Pak Hung MO

    Research output: Contribution to journalJournal articlepeer-review

    1 Citation (Scopus)


    I sketch a framework of theoretical and empirical models to illustrate the interactions between government and market actors, and the resulting coevolution of related institutions. The choices and interactions of the rational actors, in addition to other stock variables, format the motivation matrix and determine the changes in economic outcomes and institutions. The changes accumulating over time reshape the institutional environment in subsequent periods. The empirical findings suggest that state variables, government policies and choices can generate virtuous or vicious spirals driving changes in institutions and the wellbeing of people for a long period of time. Understanding the mechanism is essential for building appropriate institutions and capacity to generate inclusive and sustained economic growth.

    Original languageEnglish
    Pages (from-to)133-150
    Number of pages18
    JournalMalaysian Journal of Economic Studies
    Issue number1
    Publication statusPublished - Jun 2018

    Scopus Subject Areas

    • Economics, Econometrics and Finance(all)

    User-Defined Keywords

    • Effects
    • Estimations
    • Evolution mechanism
    • Institutional changes JEL classification: O4


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