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Political Variables in Cross‐country Growth Analysis

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  • Aymo Brunetti

Abstract

The recent boom in cross‐country growth analysis has renewed the empirical interest in political sources of economic growth. A large number of studies have tested political variables in growth regressions and a very heterogenous set of variables has been proposed to measure economically relevant differences in the political systems of countries. This paper distinguishes five categories of relevant political variables: democracy, government stability, political violence, policy volatility, and subjective perception of politics. For each of these categories, the specification, testing method, and results of the most relevant studies are presented and are critically discussed. The paper concludes that measures of democracy are least successful and measures of policy volatility and subjective perception of politics most successful as explanatory variables in cross‐country growth regressions.

Suggested Citation

  • Aymo Brunetti, 1997. "Political Variables in Cross‐country Growth Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 11(2), pages 163-190, June.
    • Handle: RePEc:bla:jecsur:v:11:y:1997:i:2:p:163-190
    DOI: 10.1111/1467-6419.00029
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    Cited by:

    1. Jac C. Heckelman & Bonnie Wilson, 2014. "Interest Groups and the “Rise and Decline” of Growth," Southern Economic Journal, John Wiley & Sons, vol. 81(2), pages 435-456, October.
    2. Hibrahim, Limi Kouotou & Epo, Boniface Ngah, 2023. "Duration of Heads of State in Power and Economic Growth in Sub-Saharan Africa," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 48(1), pages 145-172, March.
    3. M. Adnan Kabir & Najib Alam, 2021. "The Efficacy of Democracy and Freedom in Fostering Economic Growth," Emerging Economy Studies, International Management Institute, vol. 7(1), pages 76-93, May.

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