Institutions and economic research: a case of location externalities on agricultural resource allocation in the Kat River basin, South Africa: a rejoinder

Abstract

In Mbatha and Antrobus (2008), an argument was put forward against an importation or adoption of universal models or general theorems to explain locally prevailing socio-economic conditions and predict outcomes in varied geographical contexts such as in the Kat River basin. In response to this argument a comment in this edition argues that our results are caused by, metaphorically speaking, comparing apples and oranges. If, however, all of the relevant information is taken into account, a simple economic model may suffice to depict the situation within the KRV. Here we illustrate that the comment comes from a misreading of basic details in the original discussion and in its construction and presentation of an alternative model of the KRV conditions the comment reiterates our original argument that general models and theorems are likely to fail to explain local intricacies primarily because they are not founded on local historical institutions.