American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Nobel Lecture: Paths to the Periphery
American Economic Review
(pp. 1787–1817)
Abstract
My research suggests that world inequality is explained by the incidence of extractive and inclusive institutions. But why do some countries have extractive institutions? I distinguish between two main reasons; first, power relations; second, the "normative order." Normative orders provide justifications and legitimacy for institutions which may not generate prosperity, but may achieve other goals. These distinctions are critical because they create very different challenges in trying to make institutions more inclusive and create prosperity. I show how countries move from the economic periphery as a consequence of changing both. My own intellectual journey has been in the other direction, however, hence the title of the paper: I was fortunate to be born in Britain, but I have had to unlearn much of my own experience, socialization and training in order to see other societies on their own terms. That's crucial to be able to help them, but also to learn from them.Citation
Robinson, James A. 2025. "Nobel Lecture: Paths to the Periphery." American Economic Review 115 (6): 1787–1817. DOI: 10.1257/aer.115.6.1787JEL Classification
- D02 Institutions: Design, Formation, Operations, and Impact
- D63 Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- E23 Macroeconomics: Production
- K00 Law and Economics: General
- O43 Institutions and Growth
- Q32 Exhaustible Resources and Economic Development