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The Coevolution of Economic and Political Development

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  • Fali Huang

    (SMU)

Abstract

This paper establishes a simple model of long run economic and political development, which is driven by the inherent technical features of dierent production factors, and political conicts among factor owners on how to divide the outputs. The main capital form in economy evolves from land to physical capital and then to human capital, which enables their respective owners (landlords, capitalists, and workers) to gain political powers in the same sequence, shaping the political development path from monarchy to elite ruling and finally to full suffrage. When it is too costly for any group of factor owners to repress others, political compromise is reached and economic progress is not blocked; otherwise, the political conicts may lead to economic stagnation.

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Bibliographic Info

Paper provided by East Asian Bureau of Economic Research in its series Development Economics Working Papers with number 22442.

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Date of creation: Jan 2006
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Handle: RePEc:eab:develo:22442

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Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
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Keywords: economic development; Political Development; Class Structure; land; Physical Capital; Human Capital; Monarchy; Suffrage Extension;

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  17. Bertocchi, Graziella, 2003. "The Law of Primogeniture and the Transition from Landed Aristocracy to Industrial Democracy," CEPR Discussion Papers 3723, C.E.P.R. Discussion Papers.
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Cited by:
  1. Casey B. Mulligan & Kevin K. Tsui, 2008. "Political Entry, Public Policies, and the Economy," NBER Working Papers 13830, National Bureau of Economic Research, Inc.

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