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Political Regimes and Economic Growth in Latin America

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  • Facundo Albornoz
  • Jayasri Dutta

Abstract

Living in a democratic society has been internationally recognized as a basic human right. While most of the literature tries to identify the effect of democracy on economic prosperity, little work has been done to understand the determinants of economic growth under democracy. This paper examines whether the determinants of economic growth in Latin America are sensitive to political institutions. We find two stark differences between democratic and autocratic growth: (1) democratic government consumption is significantly positive for economic growth. The opposite is true for autocratic government consumption. (2) The impact of human capital is only significant under democracies.

Suggested Citation

  • Facundo Albornoz & Jayasri Dutta, 2007. "Political Regimes and Economic Growth in Latin America," Discussion Papers 07-06, Department of Economics, University of Birmingham.
    • Handle: RePEc:bir:birmec:07-06
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    References listed on IDEAS

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    Cited by:

    1. Prüfer, P. & Tondl, G., 2008. "The FDI-Growth Nexus in Latin America : The Role of Source Countries and Local Conditions," Discussion Paper 2008-61, Tilburg University, Center for Economic Research.
    2. Commander, Simon & Nikoloski, Zlatko, 2010. "Institutions and Economic Performance: What Can Be Explained?," IZA Discussion Papers 5247, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Economic Growth; Latin America; Democracy; Autocracy; Government Consumption; human capital;
    All these keywords.

    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • N46 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Latin America; Caribbean

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