Economic Thought and Practice, , 2026.
Review article
https://doi.org/10.17818/EMIP/2026/37
INSTITUTIONS AS THE FOUNDATION OF ECONOMIC PROSPERITY: INSIGHTS FROM NEW INSTITUTIONAL ECONOMICS
Taki Fiti
; Ss. Cyril and Methodius University, Skopje, North Macedonia; Macedonian Academy of Sciences and Arts
Aleksandar Stojkov
; Ss. Cyril and Methodius University, Skopje, North Macedonia
*
* Corresponding author.
Abstract
This paper examines how New Institutional Economics conceptualises the relationship between institutions and long-term economic performance. Drawing on seminal work by Douglass North, Ronald Coase, Oliver Williamson, and later institutional scholarship, it presents a systematic mapping review of literature published between January 1990 and June 2026. Using OpenAlex records, predefined eligibility criteria, bibliometric classification, and structural topic modelling, the review identifies the field’s main themes and their evolution over time. It synthesises four channels through which institutions may affect economic outcomes: incentives and transaction costs; factor accumulation and innovation; resource allocation and governance; and income distribution and political power. The reviewed evidence generally links stronger institutional quality to better economic outcomes. The strength and timing of these relationships vary across institutional measures, empirical methods, countries, and enforcement contexts. Administrative capacity, institutional complementarities, informal norms, and political incentives also shape the effectiveness of formal institutional arrangements.
Keywords
institutions; economic growth; Institutional quality; economic development
Hrčak ID:
350508
URI
Publication date:
3.9.2026.
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