| Summary: | In this dissertation, the Swedish transport aid constitutes a case study with the aim of empirically testing the presence of institutional path dependency. In New Institutional Economics the concept institutional path dependency is used for analyzing why institutions that do not promote growth are developed even when better solutions are available. In this study, institutional path dependency is defined in the following way: institutional path dependency is when new institutional conditions develop in a way that maintains an economic and social practice within the sector of the economy that the institutional condition regulates. The transport aid was introduced in 1971 and is a part of Swedish regional policy. The transport aid is allocated to certain goods-producing companies in northern Sweden in order to subsidize their cost of transportation. The aim was that these companies would strengthen their ability to compete in markets in southern Sweden and abroad. In order to perform a test of the existence of path dependency, three criteria for path dependence were defined. The first of these criteria is that new institutional conditions arise with a maintained practice within the regulated sector. The second criterion for path dependency is that the institutional condition subsists when there are other alternatives which are better and well-known from the point of view of public economy. A third criterion for path dependency is that an institutional condition is given a new legitimacy when interest groups state new motives for it. The study has shown that a practice from the previous traffic policy has lived on in the institutional condition of the transport aid, through a continued subsidization of the cost of transportation similar to a historical tradition in early railway policy (for example in the Norrland tariff). A relatively large part of the transport aid has in practice been subsidizing transports of relatively unprocessed goods, which was a reason for the criticism that the transport aid received in ...
|
|---|