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Growth-Friendly Dictatorships

Author

Listed:
  • Giacomo De Luca

    () (University of York, United Kingdom)

  • Anastasia Litina

    () (CREA, University of Luxembourg)

  • Petros G. Sekeris

    () (FNRS and CRED, University of Namur, Belgium)

Abstract

In this paper we show that in highly unequal societies, different societal groups may support a rent-seeking dicator serving their interests better than the median voter in a democratic regime. Importantly, it is the stakes of dictator in the economy, in the form of capital ownership, that drives the support of individuals. In particular, in highly societies ruled by a capital-rich dictator endowed with the power to tax and appropriate at will, the elites support dictatorial policies that generate higher growth rates than the ones obtained under democracy. Such support arises despite the total absence of checks and balances on the dictator.

Suggested Citation

  • Giacomo De Luca & Anastasia Litina & Petros G. Sekeris, 2012. "Growth-Friendly Dictatorships," CREA Discussion Paper Series 12-13, Center for Research in Economic Analysis, University of Luxembourg.
  • Handle: RePEc:luc:wpaper:12-13
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Raouf Boucekkine & Paolo Giovanni Piacquadio & Fabien Prieur, 2016. "A Lipsetian Theory of Democratization: Development, Education, Inequality, and Resources," CESifo Working Paper Series 6283, CESifo Group Munich.
    2. Carter, Michael & Morrow, John, 2014. "The political economy of inclusive rural growth," LSE Research Online Documents on Economics 60268, London School of Economics and Political Science, LSE Library.
    3. repec:eee:jcecon:v:45:y:2017:i:2:p:410-428 is not listed on IDEAS
    4. repec:esx:essedp:764 is not listed on IDEAS
    5. Hvid Anna, 2015. "Increasing Natural Resource Rents from Farmland: A Curse or a Blessing for the Rural Poor?," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 21(1), pages 59-78, January.
    6. Sen, Kunal & Pritchett, Lant & Kar, Sabyasachi & Raihan, Selim, 2016. "Democracy Versus Dictatorship? The Political Determinants of Growth Episodes," Working Paper Series rwp17-009, Harvard University, John F. Kennedy School of Government.
    7. Pantelis Kammas & Vassilis Sarantides, 2015. "Do dictatorships redistribute more?," Working Papers 2015001, The University of Sheffield, Department of Economics.

    More about this item

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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