Journal of Institutional Economics

Research Article

Modes of long-run development: Latin America and East Asia


a1 Southern Illinois University, Illinois


In this paper, two models of long-run development are constructed, one for a unimodal agricultural structure and the other for a bimodal agricultural structure. The process of the evolution of state institutional capacity under these two structures is analyzed. Capacity is measured by the ability of the state to extract revenue in return for which services are provided. The development of such capacity is seen as the key factor in providing the human capital and infrastructure necessary for the shift from inward- to outward-oriented development. Latin America and East Asia are used as examples of these two modes of long-run development.


c1 Correspondence to: Department of Economics, Southern Illinois University, Carbondale, Illinois 62901, USA. Email: