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Is the new political economy relevant to developing countries ?


  • Findlay, Ronald


Protectionism and industrial regulation are two topics in which the interplay of politics and economics is so strong that one wonders why the intellectual merger between the two approaches in the New Political Economy has taken so long. After describing the emergence of the state in Western Europe and the contemporary Third World, the author presents an economic model of the state, in which he tries to integrate its productive and predatory features. He applies the insights from that analysis to some simple general equilibrium models of trade theory, to consider the activities of a public sector within open economies in which trade taxes provide the main source of revenue.

Suggested Citation

  • Findlay, Ronald, 1989. "Is the new political economy relevant to developing countries ?," Policy Research Working Paper Series 292, The World Bank.
  • Handle: RePEc:wbk:wbrwps:292

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    References listed on IDEAS

    1. Bhagwati, Jagdish N, 1982. "Directly Unproductive, Profit-seeking (DUP) Activities," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 988-1002, October.
    2. Brennan,Geoffrey & Buchanan,James M., 2006. "The Power to Tax," Cambridge Books, Cambridge University Press, number 9780521027922, May.
    3. Mayer, Wolfgang, 1984. "Endogenous Tariff Formation," American Economic Review, American Economic Association, vol. 74(5), pages 970-985, December.
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    Cited by:

    1. Coolidge, Jacqueline & Rose-Ackerman, Susan, 1997. "High-level rent-seeking and corruption in African regimes : theory and cases," Policy Research Working Paper Series 1780, The World Bank.
    2. Easterly, William R., 1989. "Policy distortions, size of government, and growth," Policy Research Working Paper Series 344, The World Bank.
    3. Dibeh, Ghassan, 2008. "Resources and the Political Economy of State Fragility in Conflict States: Iraq and Somalia," WIDER Working Paper Series 035, World Institute for Development Economic Research (UNU-WIDER).
    4. Susan-Rose Ackerman, 1997. "Corruption, Infefficiency and Economic Growth," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 24, pages 3-20.


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