Bonnie Wilson () (Department of Economics, Saint Louis University) Dennis Coates () (Department of Economics, University of Maryland Baltimore County) Jac Heckelman () (Department of Economics, Wake Forest University)
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This paper explores the relationship between special-interest groups and economic growth, using newly assembled data on the number of groups observed across countries. In a sample of 86 countries at two points in time (for a total of 169 observations), we ¯nd support for Mancur Olson's theory that interest group activity reduces economic growth. We also ¯nd evidence that interest groups are negatively associated with both channels to growth - capital stock growth and productivity growth.
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Paper provided by Department of Economics, John Cook School of Business, Saint Louis University in its series Working Papers with number
2007-01.