Thesis: Institutional Chapter

This chapter argues that state restructuring in decentralization and AFTA has not impact regional economic growth during the transition period in the last decade. The persistent regional disparities are viewed as the long-term effect from the centralized development from three decade earlier.

Research gaps and questions

To understand the impact of state restructuring to regional economic growth, this chapter provides analysis with institutional approach. The approach has been widely applied to studies in economics, urban planning and governance, and local polities dynamics. However, despite this broad application, institutional analysis has been absence in explaining institutional changes that occurs in state restructuring and its impact to regional development.

The above research gaps leads to the following research questions:

  1. What are the institutional changes that occur in state restructuring of decentralization and trade liberalization?
  2. To what extend does institutional change analysis explains regional economic performance?
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