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Special-interest groups and growth

  • Dennis Coates

    ()

  • Jac Heckelman

    ()

  • Bonnie Wilson

    ()

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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File URL: http://hdl.handle.net/10.1007/s11127-010-9640-7
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Article provided by Springer in its journal Public Choice.

Volume (Year): 147 (2011)
Issue (Month): 3 (June)
Pages: 439-457

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Handle: RePEc:kap:pubcho:v:147:y:2011:i:3:p:439-457
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100332

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  1. Bonnie Wilson & Dennis Coates & Jac Heckelman, 2007. "Determinants of Interest Group Formation," Working Papers 2007-03, Saint Louis University, Department of Economics.
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  8. Bonnie Wilson & Dennis Coates & Jac Heckelman, 2008. "Democracy and Volatility: Do Special-Interest Groups Matter?," Working Papers 2008-01, Saint Louis University, Department of Economics, revised Aug 2009.
  9. Knack, Stephen, 2003. " Groups, Growth and Trust: Cross-Country Evidence on the Olson and Putnam Hypotheses," Public Choice, Springer, vol. 117(3-4), pages 341-55, December.
  10. Jayachandran, Seema, 2006. "The Jeffords Effect," Journal of Law and Economics, University of Chicago Press, vol. 49(2), pages 397-425, October.
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  12. Kennelly, Brendan & Murrell, Peter, 1991. " Industry Characteristics and Interest Group Formation: An Empirical Study," Public Choice, Springer, vol. 70(1), pages 21-40, April.
  13. Bonnie Wilson & Dennis Coates & Jac Heckelman, 2007. "Special-Interest Groups and Volatility," Working Papers 2007-04, Saint Louis University, Department of Economics.
  14. Bischoff, Ivo, 2003. " Determinants of the Increase in the Number of Interest Groups in Western Democracies: Theoretical Considerations and Evidence from 21 OECD Countries," Public Choice, Springer, vol. 114(1-2), pages 197-218, January.
  15. James G. MacKinnon & Halbert White, 1983. "Some Heteroskedasticity Consistent Covariance Matrix Estimators with Improved Finite Sample Properties," Working Papers 537, Queen's University, Department of Economics.
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  24. Coates, Dennis & Heckelman, Jac C, 2003. " Interest Groups and Investment: A Further Test of the Olson Hypothesis," Public Choice, Springer, vol. 117(3-4), pages 333-40, December.
  25. Heckelman, Jac C, 2000. " Consistent Estimates of the Impact of Special Interest Groups on Economic Growth," Public Choice, Springer, vol. 104(3-4), pages 319-27, September.
  26. Beck, Thorsten & Levine, Ross & Loayza, Norman, 1999. "Finance and the sources of growth," Policy Research Working Paper Series 2057, The World Bank.
  27. Garey Ramey & Valerie A. Ramey, 1994. "Cross-Country Evidence on the Link Between Volatility and Growth," NBER Working Papers 4959, National Bureau of Economic Research, Inc.
  28. Doner Richard F. & Schneider Ben Ross, 2000. "Business Associations and Economic Development: Why Some Associations Contribute More Than Others," Business and Politics, De Gruyter, vol. 2(3), pages 1-29, December.
  29. Knack, Stephen & Keefer, Philip, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1251-88, November.
  30. Raghuram G. Rajan & Luigi Zingales, 2000. "The Great Reversals: The Politics of Financial Development in the 20th Century," OECD Economics Department Working Papers 265, OECD Publishing.
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  34. repec:ebl:ecbull:v:15:y:2007:i:18:p:1-13 is not listed on IDEAS
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