Historical Analysis of Institutions and Organizations: the Case of the Brazilian Electricity Sector
Abstract: Scholars have argued that the New Institutional Economics (NIE) has not yet provided causal explanations on how long institutions persist or why and how they suffer dramatic changes. Others have stated that evidence is still inconclusive to define a theoretical justification on how changes and development occur. In light of these claimed criticisms, this paper focuses on the institutions of the electricity sector in Brazil, aiming to heighten the body of empirical research in NIE and produce satisfactory explanations that motivate theory refinement. Based on a qualitative approach, we find that the drivers of the first institutional change in Brazil’s electricity sector were related to initiatives of market protection and domestic industrial support. For the second institutional change, economic recession (country at stage of bankruptcy, debt crisis, and high inflation rates) and reliability of utility services were the driving factors. We hope this study consistently systematizes historical facts and helps create grounds for our understanding of institutional evolution and economic growth.
