Institutional Traps and Economic Growth
AbstractThis paper's point of departure is that low-quality institutions, concentration of political power, and underdevelopment are persistent over time. Its analytical model views an equal distribution of political power as a commitment device to enhance institutional quality thereby promoting growth. The politically powerful coalition contemplates relinquishing of its power, weighing this advantageous consequence against the limit on own appropriative ability that it entails. The possibility of two developmental paths is exhibited: with concentration of political and economic power, low-quality institutions, and slow growth; and a more equal distribution of political and economic resources, high-quality institutions, and faster growth.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6414.
Date of creation: Aug 2007
Date of revision:
Contact details of provider:
Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ.
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
Find related papers by JEL classification:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-09-09 (All new papers)
- NEP-DEV-2007-09-09 (Development)
- NEP-POL-2007-09-09 (Positive Political Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Nunn, Nathan, 2007.
"Historical legacies: A model linking Africa's past to its current underdevelopment,"
Journal of Development Economics,
Elsevier, vol. 83(1), pages 157-175, May.
- Nathan Nunn, 2005. "Historical Legacies: A Model Linking Africa's Past to its Current Underdevelopment," Development and Comp Systems 0508008, EconWPA.
- Cervellati Matteo & Fortunato Piergiuseppe & Sunde Uwe, 2012.
"Consensual and Conflictual Democratization,"
The B.E. Journal of Theoretical Economics,
De Gruyter, vol. 12(1), pages 1-51, December.
- Rajan, Raghuram G & Zingales, Luigi, 2006.
"The Persistence of Underdevelopment: Institutions, Human Capital or Constituencies,"
CEPR Discussion Papers
5867, C.E.P.R. Discussion Papers.
- Raghuram G. Rajan & Luigi Zingales, 2006. "The Persistence of Underdevelopment:Institutions, Human Capital or Constituencies?," Working Papers id:447, eSocialSciences.
- Lagunoff, Roger, 2009.
"Dynamic stability and reform of political institutions,"
Games and Economic Behavior,
Elsevier, vol. 67(2), pages 569-583, November.
- Roger Lagunoff, 2006. "Dynamic Stability and Reform of Political Institutions," Levine's Bibliography 784828000000000051, UCLA Department of Economics.
- Roger Lagunoff, 2005. "Dynamic Stability and Reform of Political Institutions," Game Theory and Information 0505006, EconWPA.
- Mark Gradstein, 2007. "Inequality, democracy and the protection of property rights," Economic Journal, Royal Economic Society, vol. 117(516), pages 252-269, 01.
- Sonin, Konstantin, 2003.
"Why the rich may favor poor protection of property rights,"
Journal of Comparative Economics,
Elsevier, vol. 31(4), pages 715-731, December.
- Konstantin Sonin, 2003. "Why the Rich May Favor Poor Protection of Property Rights," Working Papers w0022, Center for Economic and Financial Research (CEFIR).
- Konstantin Sonin, 2002. "Why the Rich May Favor Poor Protection of Property Rights," William Davidson Institute Working Papers Series 544, William Davidson Institute at the University of Michigan.
- Kenneth L. Sokoloff & Stanley L. Engerman, 2000. "Institutions, Factor Endowments, and Paths of Development in the New World," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 217-232, Summer.
- North, Douglass C. & Weingast, Barry R., 1989. "Constitutions and Commitment: The Evolution of Institutions Governing Public Choice in Seventeenth-Century England," The Journal of Economic History, Cambridge University Press, vol. 49(04), pages 803-832, December.
- Pritchett, Lant, 1995.
"Divergence, big time,"
Policy Research Working Paper Series
1522, The World Bank.
- Ritva Reinikka & Jakob Svensson, 2004. "Local Capture: Evidence From a Central Government Transfer Program in Uganda," The Quarterly Journal of Economics, MIT Press, vol. 119(2), pages 678-704, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.