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Special-interest groups and growth

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  • Dennis Coates
  • Jac Heckelman
  • Bonnie Wilson

Abstract

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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  • Dennis Coates & Jac Heckelman & Bonnie Wilson, 2011. "Special-interest groups and growth," Public Choice, Springer, vol. 147(3), pages 439-457, June.
    • Handle: RePEc:kap:pubcho:v:147:y:2011:i:3:p:439-457
    DOI: 10.1007/s11127-010-9640-7
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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. William Pyle & Laura Solanko, 2013. "The composition and interests of Russia’s business lobbies: testing Olson’s hypothesis of the “encompassing organization”," Public Choice, Springer, vol. 155(1), pages 19-41, April.
    3. Michele Hoyman & Jamie McCall & Laurie Paarlberg & John Brennan, 2016. "Considering the Role of Social Capital for Economic Development Outcomes in U.S. Counties," Economic Development Quarterly, , vol. 30(4), pages 342-357, November.
    4. Theresa Hager, 2020. "Special Interest Groups and Growth: A Meta-Analysis of Mancur Olsons Theory," ICAE Working Papers 116, Johannes Kepler University, Institute for Comprehensive Analysis of the Economy.
    5. Ismail M. Cole, 2015. "Interest group activity and economic growth: some new evidence from the US states," Applied Economics Letters, Taylor & Francis Journals, vol. 22(10), pages 825-829, July.
    6. Ibrahim D. Raheem & Kazeem B. Ajide & Xuan V. Vo, 2021. "The hype of social capital in the finance‐growth nexus," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 50(3), November.
    7. Dodge Cahan & Niklas Potrafke, 2021. "The Democrat-Republican presidential growth gap and the partisan balance of the state governments," Public Choice, Springer, vol. 189(3), pages 577-601, December.
    8. Papadimitri, Panagiota & Pasiouras, Fotios & Pescetto, Gioia & Wohlschlegel, Ansgar, 2021. "Does political influence distort banking regulation? Evidence from the US," Journal of Financial Stability, Elsevier, vol. 53(C).
    9. Domenico Rossignoli, 2015. "Too many and too much? Special-interest groups and inequality at the turn of the century," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 130(3), pages 337-366.
    10. Taner Güney, 2015. "Environmental sustainability and pressure groups," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(6), pages 2331-2344, November.
    11. Martin Baur, 2010. "Politics and Income Distribution," Chapters, in: Neri Salvadori (ed.), Institutional and Social Dynamics of Growth and Distribution, chapter 3, Edward Elgar Publishing.
    12. Jac C. Heckelman & Bonnie Wilson, 2013. "Institutions, Lobbying, and Economic Performance," Economics and Politics, Wiley Blackwell, vol. 25(3), pages 360-386, November.
    13. Coates, Dennis & Heckelman, Jac C. & Wilson, Bonnie, 2010. "The political economy of investment: Sclerotic effects from interest groups," European Journal of Political Economy, Elsevier, vol. 26(2), pages 208-221, June.
    14. Pittaluga, Giovanni B. & Reghezza, Alessio & Seghezza, Elena, 2020. "Reconsidering the modernization hypothesis: The role of diversified production and interest‐group competition," European Journal of Political Economy, Elsevier, vol. 65(C).
    15. Eiji Yamamura & Haruo Kondoh, 2013. "Government Transparency And Expenditure In The Rent-Seeking Industry: The Case Of Japan For 1998–2004," Contemporary Economic Policy, Western Economic Association International, vol. 31(3), pages 635-647, July.
    16. Neyapti, Bilin, 2013. "Modeling institutional evolution," Economic Systems, Elsevier, vol. 37(1), pages 1-16.
    17. Cole, Ismail M., 2014. "Short- and long-term growth effects of special interest groups in the U.S. states: A dynamic panel error-correction approach," MPRA Paper 54455, University Library of Munich, Germany, revised 02 Mar 2014.
    18. Robert F. Salvino & Gregory M. Randolph & Geoffrey K. Turnbull & Michael T. Tasto, 2019. "The effects of decentralization on special interest groups," Public Choice, Springer, vol. 181(3), pages 191-213, December.
    19. Justin Conrad & Hong-Cheol Kim & Mark Souva, 2013. "Narrow interests and military resource allocation in autocratic regimes," Journal of Peace Research, Peace Research Institute Oslo, vol. 50(6), pages 737-750, November.

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    More about this item

    Keywords

    Special interest groups; Institutional sclerosis; Economic growth; O1; O4; D7;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • D7 - Microeconomics - - Analysis of Collective Decision-Making

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