The article discusses how economic growth in modern market economies is driven by restructuring and reallocation of resources. The author argues that sound institutions are crucial for efficient decision-making in this process. The concept of specificity, where factors of production are not freely interchangeable, plays a key role in understanding macroeconomic phenomena. The author provides models to illustrate different types of specificity and analyzes inefficient restructuring and business cycle patterns. The framework proposed by the author can be applied to various economic issues such as development, growth, labor, and productivity.