Culture as a key to path dependence in Douglass North's institutional theory

Abstract

The theory of institutions and institutional change developed by Douglass North reserves a special role for culture, thus signaling a set of strategic research guidelines in some areas of knowledge: economic and development theory; economic historiography; regional/local development; planning, regulation, management and evaluation of public policies. This paper therefore presents in its concluding part a purposeful research agenda from North's seminal contribution. However, before preparing the ground for the achievement of the delineated objective, it presents the fundamental concepts of the author's theory of institutions and institutional change, establishing elements of structural analytical connectivity (institutions, organizations, institutional matrix and path dependence). It then presents the importance of culture in its theoretical construct, especially as the key to understanding the path dependence.