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The Role of the State in Economic Development

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  • Guido Tabellini

Abstract

This paper discusses the recent literature on the role of the state in economic development. It concludes that government incentives to enact sound policies are key to economic success. It also discusses the evidence on what happens after episodes of economic and political liberalizations, asking whether political liberalizations strengthen government incentives to enact sound economic policies. The answer is mixed. Most episodes of economic liberalizations are indeed preceded by political liberalizations. But the countries that have done better are those that have managed to open up the economy first, and only later have liberalized their political system. Copyright 2005 Blackwell Publishing Ltd..

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Kyklos.

Volume (Year): 58 (2005)
Issue (Month): 2 (04)
Pages: 283-303

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Handle: RePEc:bla:kyklos:v:58:y:2005:i:2:p:283-303

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References

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  1. Daron Acemoglu & Simon Johnson & James Robinson & Yunyong Thaicharoen, 2002. "Institutional Causes, Macroeconomic Symptoms: Volatility, Crises and Growth," NBER Working Papers 9124, National Bureau of Economic Research, Inc.
  2. Torsten Persson & Guido Tabellini, . "Political Economics and Macroeconomic Policy," Working Papers 121, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  3. repec:rus:hseeco:72137 is not listed on IDEAS
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Citations

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Cited by:
  1. Eiji Yamamura & Inyong Shin, 2009. "Effects of Income Inequality on Growth through Efficiency Improvement and Capital Accumulation," International Economic Journal, Taylor & Francis Journals, vol. 23(2), pages 237-258.
  2. Joscha Beckmann & Marek Endrich & Rainer Schweickert, 2014. "Government Activity and Economic Growth – One Size Fits All?," Kiel Working Papers 1903, Kiel Institute for the World Economy.
  3. Potrafke, Niklas, 2012. "Political cycles and economic performance in OECD countries: Empirical evidence from 1951-2006," Munich Reprints in Economics 19272, University of Munich, Department of Economics.
  4. James B. Ang, 2013. "Are modern financial systems shaped by state antiquity?," Development Research Unit Working Paper Series 38-13, Monash University, Department of Economics.
  5. Beraldo, Sergio & Montolio, Daniel & Turati, Gilberto, 2009. "Healthy, educated and wealthy: A primer on the impact of public and private welfare expenditures on economic growth," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(6), pages 946-956, December.
  6. Sepp, Jüri, 2007. "Estland: Eine ordnungspolitische Erfolgsgeschichte?," Discourses in Social Market Economy 2007-02, OrdnungsPolitisches Portal (OPO).
  7. Regis Bonelli, 2009. "Estado de uma Nação: Textos de Apoio - Estado e Economia: Estado e E Crescimento Econômico no Brasil," Discussion Papers 1393, Instituto de Pesquisa Econômica Aplicada - IPEA.
  8. repec:spo:wpecon:info:hdl:2441/4vc7skecu3q7u7s984pgpg64m is not listed on IDEAS
  9. François Facchini & Mickaël Melki, 2011. "Optimal Government Size and Economic Growth in France (1871-2008): An explanation by the State and Market Failures," Documents de travail du Centre d'Economie de la Sorbonne 11077, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  10. Bertarelli Silvia, 2006. "Capitale pubblico e crescita: una sintesi critica," Politica economica, Società editrice il Mulino, issue 3, pages 361-398.
  11. Robert Hamwey, 2005. "Expanding national policy space for development: Why the Multilateral Trading System must change," Development and Comp Systems 0511005, EconWPA.
  12. Sgard, Jérôme & Schemeil, Yves & Brousseau, Eric, 2010. "Bargaining on law and bureaucracies: A constitutional theory of development," Economics Papers from University Paris Dauphine 123456789/7098, Paris Dauphine University.

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