Resource-advantage theory and the wealth of nations: Developing the socio-economic research tradition

Why aren't all market-based economies wealthy? Many scholars believe that nonwealthy, market-based economies lack certain productivity-enhancing societal institutions, particularly those that promote trust. This article proposes that a new theory - the resource-advantage theory of competition - has the requisites of a socio-economic theory of competition and, consequently, can contribute to explaining why all market-based economies are not wealthy and why institutions that promote trust can be productivity-enhancing. Therefore, resource-advantage theory and its foundational propositions contribute to developing a socio-economic research tradition.