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Rent Seeking And Democracy: Empirical Evidence For Uruguay

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  • CÉSAR CALDERÃN
  • ALBERTO CHONG

Abstract

"We provide evidence for Granger causality between rent-seeking behavior and democracy in Uruguay, where both rent-seeking behavior and political shifts have varied widely in the past 80 yr but ethnolinguistic heterogeneity and inequality have remained low. This helps identify "pure" interactions and their link with rent-seeking outcomes. The presence and duration of democracy appear to have been conducive to a decrease in rent seeking, although the reduction in rent seeking does not appear to have had a bearing on the quality of democratic regime. While the duration of democratic regime may impact rent-seeking behavior, rent seeking also displays a Granger causality to democratic duration." ("JEL" O10, O1) Copyright 2007 Western Economic Association International.

Suggested Citation

  • César Calderãn & Alberto Chong, 2007. "Rent Seeking And Democracy: Empirical Evidence For Uruguay," Economic Inquiry, Western Economic Association International, vol. 45(3), pages 592-601, July.
  • Handle: RePEc:bla:ecinqu:v:45:y:2007:i:3:p:592-601
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    References listed on IDEAS

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    1. Martin C. McGuire & Mancur Olson Jr., 1996. "The Economics of Autocracy and Majority Rule: The Invisible Hand and the Use of Force," Journal of Economic Literature, American Economic Association, vol. 34(1), pages 72-96, March.
    2. Martín Rama, 1994. "Endogenous Trade Policy: A Time-Series Approach," Economics and Politics, Wiley Blackwell, vol. 6(3), pages 215-232, November.
    3. Amelung, Torsten, 1989. "The Determinants of Protection in Developing Countries: An Extended Interest-Group Approach," Kyklos, Wiley Blackwell, vol. 42(4), pages 515-532.
    4. Alberto Chong & Luisa Zanforlin, 2004. "Inward-Looking Policies, Institutions, Autocrats, and Economic Growth in Latin America: An Empirical Exploration," Public Choice, Springer, vol. 121(3), pages 335-361, February.
    5. Stephen Knack & Philip Keefer, 1995. "Institutions And Economic Performance: Cross-Country Tests Using Alternative Institutional Measures," Economics and Politics, Wiley Blackwell, vol. 7(3), pages 207-227, November.
    6. Taylor, Alan M., 1998. "On the Costs of Inward-Looking Development: Price Distortions, Growth, and Divergence in Latin America," The Journal of Economic History, Cambridge University Press, vol. 58(01), pages 1-28, March.
    7. Sendhil Mullainathan & Marianne Bertrand, 2001. "Do People Mean What They Say? Implications for Subjective Survey Data," American Economic Review, American Economic Association, vol. 91(2), pages 67-72, May.
    8. Knack, Stephen & Keefer, Philip, 1995. "Institutions and Economic Performance: Cross-Country Tests Using Alternative Institutional Indicators," MPRA Paper 23118, University Library of Munich, Germany.
    9. A. Chong & C. Calderón, 2000. "Causality and Feedback Between Institutional Measures and Economic Growth," Economics and Politics, Wiley Blackwell, vol. 12(1), pages 69-81, March.
    10. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 681-712.
    11. Wittman, Donald, 1989. "Why Democracies Produce Efficient Results," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1395-1424, December.
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    Cited by:

    1. Iqbal, Nasir & Daly, Vince, 2014. "Rent seeking opportunities and economic growth in transitional economies," Economic Modelling, Elsevier, vol. 37(C), pages 16-22.
    2. repec:gig:joupla:v:3:y:2011:i:2:p:3-41 is not listed on IDEAS

    More about this item

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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