Institutional Economics

The revolutionary alternative associated with the importation of official institutions is also not capable of fundamentally changing the trajectory of institutional development. It can either accelerate or decelerate movement in this direction. If events develop according to the second scenario, the issue can be resolved by replacing the imported models of institutions. This approach would allow identifying an exporting country whose official institutions are congruent with the informal institutions of the importing country. Subsequently, a long-lasting process of cooperation between official and informal norms begins: the initial impetus from introducing a new official institution brings about reactive changes in informal norms, and the changes in informal norms, in turn, influence the organizational structure of the official institution.