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Time-Consistent Polities and Growth in Developing Countries: An Empirical Analysis

Author

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  • James L. Butkiewicz

    (Department of Economics,University of Delaware)

  • Halit Yanikkaya

    (Department of Economics Celal Bayar University)

Abstract

Property rights are known to promote economic growth. Durable political regimes, regardless of type, can create stable environments that facilitate growth. Polity stability has an effect similar to property rights, promoting investment enhancing growth. Examination of the growth effects of regime stability finds that stable polities are important for growth in autocracies, but not democracies. That regime stability is not important for democracies indicates that parameter heterogeneity can be important when estimating empirical growth models. Not just democracies, but also stable autocracies with predictable rules-of-the-game create positive environments for economic growth.

Suggested Citation

  • James L. Butkiewicz & Halit Yanikkaya, 2005. "Time-Consistent Polities and Growth in Developing Countries: An Empirical Analysis," Working Papers 05-02, University of Delaware, Department of Economics.
    • Handle: RePEc:dlw:wpaper:05-02
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    Cited by:

    1. James L. Butkiewicz & Halit Yanikkaya, 2011. "Institutions and the Impact of Government Spending on Growth," Journal of Applied Economics, Taylor & Francis Journals, vol. 14(2), pages 319-341, November.
    2. Lawrence King & Osvaldo Gómez Martínez, 2010. "Property Rights Reform and Development: A Critique of the Cross-National Regression Literature," Working Papers wp216, Political Economy Research Institute, University of Massachusetts at Amherst.

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    More about this item

    Keywords

    Property Rights; Stability; Growth; Democracy; Autocracy;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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