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Good versus Bad Political Institutions and Economic Welfare?

Author

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  • Dawood Mamoon

    (University of Management and Technology, Lahore, Pakistan)

Abstract

Purpose: The paper finds that countries which practice democracy are less prone to unequal outcomes especially when it comes to wage inequality and income inequality whereas autocracy is associated with higher level of wage inequalities but its impact on income inequalities are insignificant. Methodology: Though under good economic management, autocracies may redistribute incomes from the richest to the poorest, more generally an autocratic set up violates the median voter hypothesis. Findings: The results also show that political stability and voice and accountability are more sensitive to inequalities than democracy and autocracy which is to say that the countries which are politically stable and practice accountability also form more equal societies. Recommendations: This study open new directions for further research.

Suggested Citation

  • Dawood Mamoon, 2015. "Good versus Bad Political Institutions and Economic Welfare?," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 3(4), pages 165-175, April.
    • Handle: RePEc:ijr:journl:v:3:y:2015:i:4:p:165-175
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    References listed on IDEAS

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    More about this item

    Keywords

    Institutions; Trade Liberalisation; Redistribution; Wage Inequality;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative

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