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The Application of Institutional Economics Theory in Solving Developing Countries Market Problems - Taking Ethiopia Grain Market and China Tomato Market as Examples
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Abstract
Since the 1990s, when the new institutional economics was first introduced, many economists have been looking for a way to incorporate its ideas into the field of development economics. In this paper, we investigate the prospects of using development economics theory, which is grounded in institutional economics, to address the economic challenges faced by developing nations. In this paper, we conclude that institutional economics theory can be successfully applied to the problem of economic development in low-income countries. Developing nations shouldn't discount the harm caused by irrational trading decisions. When people act irrationally in the market, it can have a negative impact on the economy as a whole. As such, developing countries could benefit from implementing brokerage institutions to lessen the blow of irrational behavior on economic growth.
Keywords
instutional economis, development economis, developing countries, Ethopia, market
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Cite this article
Li,X. (2023). The Application of Institutional Economics Theory in Solving Developing Countries Market Problems - Taking Ethiopia Grain Market and China Tomato Market as Examples. Advances in Economics, Management and Political Sciences,16,148-153.
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Volume title: Proceedings of the 2nd International Conference on Business and Policy Studies
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