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Institutions, democracy and growth in the very long run

Author

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  • Konstantin Yanovskiy

    (Institutional Development Department, Gaidar Institute for Economic Policy (IEP), Moscow, Russia
    Center for Institutional Development at RANEPA, Moscow, Russia)

  • Sergey Shulgin

    (The Russian Presidential Academy of National Economy and Public Administration (RANEPA), Gaidar Institute for Economic Policy, Institute for Applied Economic Studies, Gazetny lane 5, 125993 Moscow, Russia)

Abstract

We tested the hypothesis of the political basis for economic rights and constructed our own variables of political regimes’ classification for the years 1820–2000. We found significant positive interdependencies between democracy indicators and economic growth. The protection of private property rights requires, first and foremost, due guarantees for personal immunity. Discretionary arrests and property seizures undermine any formal guarantees of private property, low taxation benefits, etc. Personal immunity should be defended even for “unpleasant” persons or for the possible political opponents of the country’s ruler.

Suggested Citation

  • Konstantin Yanovskiy & Sergey Shulgin, 2013. "Institutions, democracy and growth in the very long run," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 63(4), pages 493-510, December.
    • Handle: RePEc:aka:aoecon:v:63:y:2013:i:4:p:493-510
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    Cited by:

    1. Rafi Amir-ud-Din & Muhammad Usman & Faisal Abbas & Sajid Amin Javed, 2019. "Human versus physical capital: issues of accumulation, interaction and endogeneity," Economic Change and Restructuring, Springer, vol. 52(4), pages 351-382, November.
    2. Yanovskiy Konstantin & Zhavoronkov Sergey, 2016. "Конституционная Экономика: Защита Частной Собственности Примеры Того, Как Конституция Может Защищать Права Собственности И Способствовать Долгосрочному Процветанию," Working Papers wpaper-2016-273, Gaidar Institute for Economic Policy, revised 2016.
    3. Konstantin Yanovsky & Rinat Menyashev & Timofey Ginker, 2014. "Indices, Institutions and Economic Growth: In Search of Reliable Indicators (recount)," Working Papers 0103, Gaidar Institute for Economic Policy, revised 2014.
    4. Myeong Hwan Kim & Yongseung Han, 2015. "Investigating the Empirical Relationship between Polity and Economic Growth," Review of Political Economy, Taylor & Francis Journals, vol. 27(3), pages 341-368, July.
    5. Rinat Menyashev & Timur Natkhov & Konstantin Yanovskiy, 2013. "Institutions, ratings and economic growth: in search of reliable indicators," HSE Working papers WP BRP 47/EC/2013, National Research University Higher School of Economics.
    6. Sergey Zhavoronkov & Konstantin Yanovskiy & Timofey Ginker & Ilia Zatkovetsky, 2016. "To Kill Hope? In Search of a Reliable Strategy to Fight Terrorism," Working Papers 149, Gaidar Institute for Economic Policy, revised 2016.

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    More about this item

    Keywords

    rule of law; rule of force; personal rights; private property protection; economic growth; Russia;
    All these keywords.

    JEL classification:

    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • P50 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - General
    • N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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