Case of Property Rights Reforms
Economic transition is a process of radical institutional change, a process of building of new institutions required by market economy. However, government plays an important role in carrying out the economic reforms. Today the experience of transition countries with implementation of new institutions as bringing on the way economic reforms is reviewed as the development ways and especially the economic growth in different post-transformation countries diverge strongly. The issue central to promotion of economic growth is a successful implementation of property rights through governmental activities. The paper focuses on the role of government as a learning actor, drawing upon a range of existing approaches to explain governmental learning in evolutionary economic. First, it a) compares institutions and economic reforms regarding the introduction and the protection of property rights in Russia and China in the first years of transformation. Then, it b) analyzes the impact of reforms conducted and institutions set on the incentives to entrepreneurs to engage in businesses. The paper shows that under condition of bounded rationality and radical uncertainty the growth is determined by capacity of governmental learning.