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Political institutions as substitute for democracy: a political economy analysis of economic growth

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Listed author(s):
  • Pereira, Carlos
  • Teles, Vladimir Kühl

Abstract

This manuscript empirically assesses the effects of political institutions on economic growth. It analyzes how political institutions affect economic growth in different stages of democratization and economic development by means of dynamic panel estimation with interaction terms. The new empirical results obtained show that political institutions work as a substitute for democracy promoting economic growth. In other words, political institutions are important for increasing economic growth, mainly when democracy is not consolidated. Moreover, political institutions are extremely relevant to economic outcomes in periods of transition to democracy and in poor countries with high ethnical fractionalization.

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File URL: http://bibliotecadigital.fgv.br/dspace/bitstream/10438/2752/1/TD%20196%20-%20Vladimir%20Kuhl%20Teles.pdf
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Paper provided by FGV/EESP - Escola de Economia de São Paulo, Getulio Vargas Foundation (Brazil) in its series Textos para discussão with number 196.

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Date of creation: 03 Sep 2009
Handle: RePEc:fgv:eesptd:196
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Cited by:

  1. Paola Bongini & Małgorzata Iwanicz-Drozdowska & Paweł Smaga & Bartosz Witkowski, 2017. "Financial Development and Economic Growth: The Role of Foreign-Owned Banks in CESEE Countries," Sustainability, MDPI, Open Access Journal, vol. 9(3), pages 1-25, March.
  2. Sugata Ghosh & Andros Gregoriou & Anirban Mitra, 2013. "On the Role of Democracy in the Ethnicity-Growth Relationship: Theory and Evidence," CEDI Discussion Paper Series 13-02, Centre for Economic Development and Institutions(CEDI), Brunel University.

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