Political Regimes and Economic Growth in Latin America
AbstractLiving 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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Bibliographic InfoPaper provided by Department of Economics, University of Birmingham in its series Discussion Papers with number 07-06.
Length: 20 pages
Date of creation: Jun 2007
Date of revision:
Economic Growth; Latin America; Democracy; Autocracy; Government Consumption; human capital;
Find related papers by JEL classification:
- O43 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
- O54 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
- 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, International Relations, and Regulation - - - Latin America; Caribbean
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-30 (All new papers)
- NEP-CDM-2007-06-30 (Collective Decision-Making)
- NEP-DEV-2007-06-30 (Development)
- NEP-HRM-2007-06-30 (Human Capital & Human Resource Management)
- NEP-POL-2007-06-30 (Positive Political Economics)
- NEP-SOC-2007-06-30 (Social Norms & Social Capital)
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