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Abstract

In recent years, the New institutional Economics, though yet at its formative stage, has gained currency among some economists and donor agencies like the World Bank. However, its subject matter and its relevance to current issues are little understood by many researchers interested in development problems. This paper presents a survey of the literature and a review of the current state of the New institutional Economics (NIE) with a focus on its meaning, strengths, weaknesses and current argument about its role and importance in the development process. The paper underlines the importance of the NIE and identifies agenda for future research.

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