How did research on Asian newly industrialized economies encourage renewed study of institutions?

Research into the state-led development of the Asian newly industrialized economies (NIEs) played a pivotal role in the revival of new institutionalism during the 1980s.1

Following World War II, institutionalism had lost prominence in the social sciences to theories emphasizing individual behavior or social structures. However, the study of the Asian NIEs—such as South Korea, Taiwan, Singapore, and Hong Kong—challenged prevailing neoclassical assumptions that development was solely the result of market forces. Researchers observed that the economic success of these nations was often planned and executed through the institutions of a centralized, authoritarian state, rather than through the unfettered market mechanisms prescribed by neoliberal theory.12

This evidence encouraged social scientists to "bring the state back in" as an essential explanatory variable. By demonstrating that institutions act as critical intermediaries between social structures and economic outcomes, the Asian experience helped shift the focus of political economy back toward investigating how rules, procedures, and organizations shape development. This renewed interest ultimately contributed to a broader, more nuanced understanding of how institutions—ranging from formal laws to informal norms—influence societal and economic trajectories.13