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Political Variables in Growth Regressions

In: The Political Dimension of Economic Growth

Author

Listed:
  • Aymo Brunetti

    (Universität des Saarlandes
    University of Basle)

Abstract

In a study for the World Bank, Stone, Levy and Paredes (1992) tried to discover the main obstacles to private business development in Brazil and Chile. The research was based on interviews with forty-two clothing firms of different sizes in each country. The entrepreneurs were confronted with a list of twenty possible problems about doing business, and they were asked to assign the relative importance to each of these areas. The list included most major problems, ranging from inflation and high taxes to political uncertainty and lack of access to credit. As different as the results for the two countries were, there was one area of clear agreement: in both countries the entrepreneurs considered political and policy uncertainty a very serious problem for doing business. In Brazil, it was cited as the most important and in Chile as the second most important of the twenty obstacles to private-sector development.

Suggested Citation

  • Aymo Brunetti, 1998. "Political Variables in Growth Regressions," International Economic Association Series, in: Silvio Borner & Martin Paldam (ed.), The Political Dimension of Economic Growth, chapter 6, pages 117-135, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-26284-7_6
    DOI: 10.1007/978-1-349-26284-7_6
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    Cited by:

    1. Hasan Vergil & Erdogan Teyyare, 2017. "Crisis, Institutional Quality and Economic Growth," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 31(2), pages 1-19.
    2. Peter Jensen & Martin Paldam, 2006. "Can the two new aid-growth models be replicated?," Public Choice, Springer, vol. 127(1), pages 147-175, April.

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