Barriers to institutional development in Europe: economic productivity, social trust and political capital

Publication type Article
Status Published
Occupation: Professor
Affiliation: Department of Political Science, Faculty of Social Sciences, National Research University “Higher School of Economics”
Address: 20 Myasnitskaya ulitsa, Moscow 101000 Russia
Affiliation: Keldysh Institute of Applied Mathematics
Address: Miusskaya sq., 4 Moscow, 125047, Russia
Occupation: Lecturer
Affiliation: Department of Political Science, Faculty of Social Sciences, National Research University “Higher School of Economics”
Address: 20 Myasnitskaya ulitsa, Moscow 101000 Russia
Journal nameObshchestvennye nauki i sovremennost
EditionIssue 5

The paper considers the problem of institutional development in the countries of Central and Eastern Europe. We analyze existing approaches to explaining the factors and determinants of institutional development and strive to determine why there was no evidence of institutional convergence in European countries between 1990 and 2013. We look at theoretical and methodological limitations typical for mainstream approaches to the problem in contemporary political science. The data we utilize comprises a wide range of quantitative variables which measure levels of institutional development, social trust and political capital. We also use our own Total Factor Productivity (TFP) estimates obtained through non-parametric methods using raw data. We analyze relationships between the variables using correlations, regression analysis and clustering. The results of statystical analysis point at the mechanism through which TFP influences institutional development: we show that TFP is a necessary prerequisite for institutional transformation.

Keywordstotal factor productivity, institutional development, social trust, political capital, social capital
Publication date17.10.2017
Number of characters1274
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