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Growth-Friendly Dictatorships

Author

Listed:
  • Giacomo De Luca

    () (University of York)

  • Anastasia Litina

    () (University of Luxembourg, Faculty of Law, Economics and Finance)

  • Petros G. Sekeris

    () (Center for Research in the Economics of Development, University of Namur)

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," Working Papers 1209, University of Namur, Department of Economics, revised Sep 2012.
  • Handle: RePEc:nam:wpaper:1209
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    References listed on IDEAS

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    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Economic growth with egoistic dictators
      by Economic Logician in Economic Logic on 2012-10-30 19:32:00
    2. [経済]地獄に堕ちた勇者ども
      by himaginary in himaginaryの日記 on 2012-11-15 14:00:00

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    Cited by:

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    2. 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.
    3. 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.
    4. Pantelis Kammas & Vassilis Sarantides, 2015. "Do dictatorships redistribute more?," Working Papers 2015001, The University of Sheffield, Department of Economics.
    5. 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.
    6. repec:esx:essedp:764 is not listed on IDEAS
    7. 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.
    8. repec:taf:pocoec:v:28:y:2016:i:2:p:220-231 is not listed on IDEAS

    More about this item

    Keywords

    Regime type; capital distribution; growth;

    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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