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The Coevolution of Economic and Political Development from Monarchy to Democracy

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  • Fali Huang

    (School of Economics, Singapore Management University)

Abstract

This paper establishes a simple model of long run economic and political development, which is driven by the inherent technical features of different production factors and the political conflicts among factor owners on how to divide the outputs. The main production factor 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 power in the same sequence, shaping the political development path from monarchy to oligarchy and ?finally to democracy with 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 conflicts may lead to economic stagnation.

Suggested Citation

  • Fali Huang, 2007. "The Coevolution of Economic and Political Development from Monarchy to Democracy," Working Papers 07-2007, Singapore Management University, School of Economics.
    • Handle: RePEc:siu:wpaper:07-2007
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    2. Stephen L. Parente & Luis Felipe Sáenz & Anna Seim, 2022. "Income, education and democracy," Journal of Economic Growth, Springer, vol. 27(2), pages 193-233, June.
    3. Mulligan, Casey B. & Tsui, Kevin K., 2015. "Political entry, public policies, and the economy," Research in Economics, Elsevier, vol. 69(3), pages 377-397.
    4. Fali Huang, 2012. "Why Did Universities Precede Primary Schools? A Political Economy Model Of Educational Change," Economic Inquiry, Western Economic Association International, vol. 50(2), pages 418-434, April.
    5. Veselov, D. & Yarkin, A., 2016. "Wealth Distribution and Political Conflict in the Model of Transition from Stagnation to Growth," Journal of the New Economic Association, New Economic Association, vol. 32(4), pages 30-60.
    6. Sima, Di & Huang, Fali, 2023. "Is democracy good for growth? — Development at political transition time matters," European Journal of Political Economy, Elsevier, vol. 78(C).
    7. Yaya, OlaOluwa S & Adekoya, Oluwasegun B. & Adesiyan, Femi, 2020. "The Persistence of Stock Market Returns during the Presidential elections in Nigeria," MPRA Paper 99390, University Library of Munich, Germany.

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    More about this item

    Keywords

    Economic Development; Political Development; Democratization; Class Structure; Land; Physical Capital; Human Capital; Monarchy; Oligarchy; Democracy; Suffrage Extension.;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative

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