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The Coevolution of Economic and Political Development

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  • Fali Huang

    (SMU)

Abstract

This paper establishes a simple model of long run economic and political development, which is driven by the inherent technical features of dierent production factors, and political conicts among factor owners on how to divide the outputs. The main capital form in economy evolves from land to physical capital and then to human capital, which enables their respective owners (landlords, capitalists, and workers) to gain political powers in the same sequence, shaping the political development path from monarchy to elite ruling and finally to full suffrage. When it is too costly for any group of factor owners to repress others, political compromise is reached and economic progress is not blocked; otherwise, the political conicts may lead to economic stagnation.

Suggested Citation

  • Fali Huang, 2006. "The Coevolution of Economic and Political Development," Development Economics Working Papers 22442, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:develo:22442
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    File URL: http://www.eaber.org/node/22442
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    References listed on IDEAS

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    Cited by:

    1. Mulligan, Casey B. & Tsui, Kevin K., 2015. "Political entry, public policies, and the economy," Research in Economics, Elsevier, vol. 69(3), pages 377-397.
    2. Jorge Braga de Macedo & Luis Brites Pereira & Joaquim Oliveira Martins & João Tovar Jalles, 2013. "Globalization, Democracy and Development," NBER Working Papers 19575, National Bureau of Economic Research, Inc.
    3. Seim, Anna Larsson & Parente, Stephen L., 2013. "Democracy as a middle ground: A unified theory of development and political regimes," European Economic Review, Elsevier, vol. 64(C), pages 35-56.

    More about this item

    Keywords

    economic development; Political Development; Class Structure; land; Physical Capital; Human Capital; Monarchy; Suffrage Extension;

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative

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