THE THEORETICAL ASPECT OF THE RELATIONSHIP BETWEEN INSTITUTIONAL CHANGE, ECONOMIC POLICY AND GROWTH
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The paper examines the latest trends in theoretical research into possible interactions between institutional change and economic policy in the process of growth. Even though the article focuses on changes in the theoretical approach to economic growth and development, the author analyzes these issues in combination with actual economic processes. New trends and processes that have taken place over the past decade or so have led to radical changes in economic theory. This is primarily because the previously used and recommended tools were inefficient. He describes past experiences that defy traditional interpretation and call for a more adequate approach. The article shows that institutional change is seen as an important factor not only in development economics, but also in empirical studies of economic growth conducted as part of mainstream economics. The author's analysis of the current stage of research shows that, contrary to expectations, the differences between economic policy and institutional change are still unclear; they are mostly intuitive and arbitrary in nature, and the terms themselves are either imprecise or, in some cases, left completely undefined. This means that researchers have insufficiently examined the complementariness, substitutability and relative autonomy of institutions with regard to economic policy, the author concludes. Consequently, in the coming years, those conducting research into economic growth should analyze the role of institutions and economic policy with greater precision.
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