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Political Regimes and Economic Growth in Latin America

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Author Info
Facundo Albornoz
Jayasri Dutta

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Abstract

Living in a democratic society has been internationally recognized as a basic human right. While most of the literature tries to identify the effect of democracy on economic prosperity, little work has been done to understand the determinants of economic growth under democracy. This paper examines whether the determinants of economic growth in Latin America are sensitive to political institutions. We find two stark differences between democratic and autocratic growth: (1) democratic government consumption is significantly positive for economic growth. The opposite is true for autocratic government consumption. (2) The impact of human capital is only significant under democracies.

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Publisher Info
Paper provided by Department of Economics, University of Birmingham in its series Discussion Papers with number 07-06.

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Length: 20 pages
Date of creation: Jun 2007
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Handle: RePEc:bir:birmec:07-06

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Related research
Keywords: Economic Growth Latin America Democracy Autocracy Government Consumption human capital

Find related papers by JEL classification:
H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
N46 - Economic History - - Government, War, Law, and Regulation - - - Latin America; Caribbean

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    Other versions:
  2. Lederman, Daniel & Loayza, Norman & Reis Soares, Rodrigo, 2001. "Accountability and corruption : political institutions matter," Policy Research Working Paper Series 2708, The World Bank. [Downloadable!]
    Other versions:
  3. Tavares, Jose & Wacziarg, Romain, 2001. "How democracy affects growth," European Economic Review, Elsevier, vol. 45(8), pages 1341-1378, August. [Downloadable!] (restricted)
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  6. Laffont, Jean-Jacques & Meleu, Mathieu, 2001. "Separation of powers and development," Journal of Development Economics, Elsevier, vol. 64(1), pages 129-145, February. [Downloadable!] (restricted)
  7. Persson, Torsten & Roland, Gerard & Tabellini, Guido, 1997. "Separation of Powers and Political Accountability," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1163-1202, November.
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  8. Sala-i-Martin, Xavier, 1997. "I Just Ran Two Million Regressions," American Economic Review, American Economic Association, vol. 87(2), pages 178-83, May. [Downloadable!] (restricted)
  9. Minier, Jenny A, 1998. " Democracy and Growth: Alternative Approaches," Journal of Economic Growth, Springer, vol. 3(3), pages 241-66, September. [Downloadable!] (restricted)
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  11. Heitor Almeida & Daniel Ferreira, 2002. "Democracy and the Variability of Economic Performance," Economics and Politics, Blackwell Publishing, vol. 14(3), pages 225-257, November. [Downloadable!] (restricted)
  12. Barro, Robert J, 1996. " Democracy and Growth," Journal of Economic Growth, Springer, vol. 1(1), pages 1-27, March.
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