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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 IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University in its series Working Papers with number 265.

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Date of creation: 2004
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Handle: RePEc:igi:igierp:265

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References

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  1. Torsten Persson & Guido Tabellini, . "Political Economics and Macroeconomic Policy," Working Papers 121, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  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. Eric Brousseau & Yves Schemeil & Jérôme Sgard, 2010. "Bargaining on Law and Bureaucracies: A Constitutional Theory of Development," Sciences Po publications info:hdl:2441/4vc7skecu3q, Sciences Po.
  2. James B. Ang, 2013. "Are modern financial systems shaped by state antiquity?," Monash Economics Working Papers 38-13, Monash University, Department of Economics.
  3. Bertarelli Silvia, 2006. "Capitale pubblico e crescita: una sintesi critica," Politica economica, Società editrice il Mulino, issue 3, pages 361-398.
  4. 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, vol. 38(6), pages 946-956, December.
  5. Potrafke, Niklas, 2012. "Political cycles and economic performance in OECD countries: Empirical evidence from 1951-2006," Munich Reprints in Economics, University of Munich, Department of Economics 19272, University of Munich, Department of Economics.
  6. Regis Bonelli, 2009. "Estado de uma Nação: Textos de Apoio - Estado e Economia: Estado e E Crescimento Econômico no Brasil," Discussion Papers 1393, Instituto de Pesquisa Econômica Aplicada - IPEA.
  7. Eiji Yamamura & Inyong Shin, 2009. "Effects of Income Inequality on Growth through Efficiency Improvement and Capital Accumulation," International Economic Journal, Taylor & Francis Journals, Taylor & Francis Journals, vol. 23(2), pages 237-258.
  8. Facchini, François & Melki, Mickaël, 2013. "Efficient government size: France in the 20th century," European Journal of Political Economy, Elsevier, vol. 31(C), pages 1-14.
  9. Robert Hamwey, 2005. "Expanding national policy space for development: Why the Multilateral Trading System must change," Development and Comp Systems 0511005, EconWPA.
  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. repec:spo:wpecon:info:hdl:2441/4vc7skecu3q7u7s984pgpg64m is not listed on IDEAS
  12. 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 esid-032-14, BWPI, The University of Manchester.
  13. Sepp, Jüri, 2007. "Estland: Eine ordnungspolitische Erfolgsgeschichte?," Discourses in Social Market Economy 2007-02, OrdnungsPolitisches Portal (OPO).

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