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Do political institutions yield multiple growth regimes?

Author

Listed:
  • David Coyne

    () (Federal Reserve Bank of Boston)

  • Chih-ming Tan

    () (Clark University)

Abstract

We investigate the effects of political institutions on economic growth. We specifically explore this relationship while controlling for heterogeneity and model uncertainty. We use threshold regression (Hansen 2000) to search for possible nonlinearities and/or interaction effects with respect to political institutions. We also implement a novel approach to account for theory uncertainty by applying Bayesian model averaging in the threshold regression context. We find that less democratic countries, specifically those with less competitiveness in executive recruitment, follow a different growth process than those with higher competitiveness.

Suggested Citation

  • David Coyne & Chih-ming Tan, 2012. "Do political institutions yield multiple growth regimes?," Economics Bulletin, AccessEcon, vol. 32(2), pages 1442-1454.
  • Handle: RePEc:ebl:ecbull:eb-12-00325
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    References listed on IDEAS

    as
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    Cited by:

    1. Man, Georg, 2015. "Competition and the growth of nations: International evidence from Bayesian model averaging," Economic Modelling, Elsevier, vol. 51(C), pages 491-501.

    More about this item

    Keywords

    Economic Growth; Institutions; Threshold Regression; Regression Trees; Bayesian Model Averaging;

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables

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