Productive capacity, a platform for institutional change and sustainable development: The case for developing economies

AMYA KANOO, AHLIA UNIVERSITY, KINGDOM OF BAHRAIN
Abstract: Globalisation of the world economies has brought about a fragile balance between the opportunities and risks for developing markets. The development of productive capacity depends on the policy choices, which a nation adopts to manage its domestic infrastructure and national economy with that of the global economies market requirements. The institutional structures of developing economies have developed incrementally towards a dualistic market production structure, lacking domestic market coherence and sustainability. Therefore, creating an institutional infrastructure gap that requires dynamic institutional change, productive capacity measures and deliberate policies to deter path dependency and encourage sustainability.
Keywords: globalisation; policy choices; domestic infrastructure; productive capacity; dualistic market infrastructure gap; path dependency.