Economic and social development under the aegis of Institutional Theory The influence of Entrepreneurship

Abstract

The Institutional Theory, developed by North, has a special interest to assess the inequalities of economic and social development in the different territories. When the models of society are put into question, it is important to evaluate which factors are most relevant to their definition and how they impact economic and social development. Based on the Systematic Literature Review carried out, for the Institutional Theory, the factors to be analyzed are the following: institutions, education, entrepreneurship, social context and formal and informal sector. To note that with the thrive of the economic and social development, more the formal institutions become normalized, the less agents consider the use of informal ties. Entrepreneurship is the main factor for innovation and, at the same time, for economic and social development.