Template-Type: ReDIF-Article 1.0

Author-Name: Istvan Konya
Author-Workplace-Name: Corvinus University of Budapest, Centre for Economic and Regional Studies 
Author-Email: istvan.konya@uni-corvinus.hu
Author-Person: pko53

Title: The Connection between Institutions and Economic Development - the Work of the 2024 Nobel Laureates in Economics

Abstract: In 2024, the Nobel Prize in Economic Sciences was shared between Daron
Acemoglu, Simon Johnson and James Robinson for their research on 'the formation
of institutions and their impact on development'. One fundamental question in
economics is why different countries have reached radically different levels
of development. It is now generally accepted that the role of the institutions
that regulate the functioning of the economic and political system is pivotal in
this issue. The laureates made a huge step forward in exploring the causal link
between institutions and economic development. They convincingly demonstrated
that the adequate protection of property rights had a substantial positive impact
on long-term economic development. Another key scientific achievement of the
researchers was the endogenisation of the formation and evolution of institutions.
The research programme of Acemoglu and Robinson shed light on why and under
what circumstances policymakers choose institutions that help (or hinder) economic
development.

Classification-JEL: O11, O47, P14, P16
Keywords: Nobel Prize, development economics, institutions
Pages: 132-155
Volume: 24
Issue: 1
Year: 2025
File-URL: https://hitelintezetiszemle.mnb.hu/sw/static/file/fer-24-1-e1-konya.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:24:y:2025:i:1:p:132-155