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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.

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Bibliographic Info

Paper provided by UCLA Department of Economics in its series Levine's Bibliography with number 122247000000000720.

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Date of creation: 02 Dec 2004
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Handle: RePEc:cla:levrem:122247000000000720

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References

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  1. Torsten Persson & Guido Tabellini, 1997. "Political Economics and Macroeconomic Policy," NBER Working Papers 6329, National Bureau of Economic Research, Inc.
  2. 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.
  3. repec:rus:hseeco:72137 is not listed on IDEAS
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Cited by:
  1. James B. Ang, 2013. "Are modern financial systems shaped by state antiquity?," Development Research Unit Working Paper Series, Monash University, Department of Economics 38-13, Monash University, Department of Economics.
  2. David Hulme & Antonio Savoia & Kunal Sen, 2014. "Governance as a global development goal? Setting, measuring and monitoring the Post-2015 Development Agenda," Brooks World Poverty Institute Working Paper Series, BWPI, The University of Manchester esid-032-14, BWPI, The University of Manchester.
  3. Facchini, François & Melki, Mickaël, 2013. "Efficient government size: France in the 20th century," European Journal of Political Economy, Elsevier, Elsevier, vol. 31(C), pages 1-14.
  4. Sepp, Jüri, 2007. "Estland: Eine ordnungspolitische Erfolgsgeschichte?," Discourses in Social Market Economy 2007-02, OrdnungsPolitisches Portal (OPO).
  5. Yamamura, Eiji & Shin, Inyong, 2008. "Effects of Income Inequality on Growth through Efficiency Improvement and Capital Accumulation," MPRA Paper 10220, University Library of Munich, Germany.
  6. 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, Elsevier, vol. 38(6), pages 946-956, December.
  7. Sgard, Jérôme & Schemeil, Yves & Brousseau, Eric, 2010. "Bargaining on law and bureaucracies: A constitutional theory of development," Economics Papers from University Paris Dauphine, Paris Dauphine University 123456789/7098, Paris Dauphine University.
  8. Robert Hamwey, 2005. "Expanding national policy space for development: Why the Multilateral Trading System must change," Development and Comp Systems 0511005, EconWPA.
  9. Niklas Potrafke, 2012. "Political cycles and economic performance in OECD countries: empirical evidence from 1951–2006," Public Choice, Springer, Springer, vol. 150(1), pages 155-179, January.
  10. 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.
  11. Bertarelli Silvia, 2006. "Capitale pubblico e crescita: una sintesi critica," Politica economica, Società editrice il Mulino, Società editrice il Mulino, issue 3, pages 361-398.
  12. repec:spo:wpecon:info:hdl:2441/4vc7skecu3q7u7s984pgpg64m is not listed on IDEAS
  13. Regis Bonelli, 2009. "Estado de uma Nação: Textos de Apoio - Estado e Economia: Estado e E Crescimento Econômico no Brasil," Discussion Papers, Instituto de Pesquisa Econômica Aplicada - IPEA 1393, Instituto de Pesquisa Econômica Aplicada - IPEA.

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