Governmental Learning as a Determinant of Economic Growth

Systemic economic transition is a process of determined radical institutional change, aprocess of building new institutions required by a market economy. Nowadays, the experienceof transition countries with the implementation of new institutions could be reviewedas a method of economic development that despite similar singular steps has differenteffects on the domestic economic performance. The process of institutionalchange towards a market economy is determined by political will, thus the governmentplays an important role in carrying out the economic reforms. Among the variety of outcomesand effects the attention is drawn especially to economic growth that divergessignificantly in different post-transition countries. The paper attempts to shed light uponthe problem on the basis of institutional economics, of economics of innovation and partiallyof political economy of growth using an evolutionary, process-oriented perspective.In this context the issue central to the promotion of economic growth is the successfulimplementation of new institutions through governmental activities. The papershows that under the conditions of bounded rationality and radical uncertainty economicgrowth is determined, inter alia, by the capacity for governmental learning.