IDEAS home Printed from https://ideas.repec.org/a/ntu/ntugeo/vol3-iss2-15-132.html
   My bibliography  Save this article

The Essential Political Framework For Economic Growth

Author

Listed:
  • MADĂLINA MIHAELA RADU

    (Ph.D. Candidate, Departament of Economics and Economic Policy, Bucharest University of Economic Studies, 6 Piața Romană Street, District 1, Bucharest, ROMANIA)

Abstract

The question referring to the reasons for which the differentiate growth rates across countries occurs is one of the most debated subjects within the economic literature. A common feature of the majority of these papers is the importance and the heaviness of the political institutions in the growth path of a country. In this study we will discuss three main characteristics of political institutions by endeavouring their contribution and effects on economic growth. The essential political conditions for growth will be determined using a model that integrates political factors into an endogenous growth model and derives the effects of political repression, political stability and policy certainty on economic growth. Next, we will asses in what extent the political context influences an individual’s economic and rational choice. To highlight the impact of the three political dimensions: political freedom, political stability and policy certainty we will discuss the specificity of economic trajectories in CEE countries. This fact will enhance our ability of distinguishing the specific role that each of these variables is playing and also, the existing interdependence between them. Keywords: economic growth, institutions, political system, reproducible capital.

Suggested Citation

  • Madălina Mihaela Radu, 2015. "The Essential Political Framework For Economic Growth," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 3(2), pages 132-138, November.
    • Handle: RePEc:ntu:ntugeo:vol3-iss2-15-132
    as

    Download full text from publisher

    File URL: http://www.globeco.ro/wp-content/uploads/vol/split/vol_3_no_2/geo_2015_vol3_no2_art_015.pdf
    File Function: First version, 2015
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Moore, Mick & Leavy, Jennifer & Houtzager, Peter & White, Howard, 1999. "Polity qualities: how governance affects poverty," MPRA Paper 9467, University Library of Munich, Germany.
    2. Dani Rodrik, 2007. "Introductiion to One Economics, Many Recipes: Globalization, Institutions, and Economic Growth," Introductory Chapters, in: One Economics, Many Recipes: Globalization, Institutions, and Economic Growth, Princeton University Press.
    3. Levine, Ross & Renelt, David, 1992. "A Sensitivity Analysis of Cross-Country Growth Regressions," American Economic Review, American Economic Association, vol. 82(4), pages 942-963, September.
    4. Pereira, Carlos & Teles, Vladimir Kuhl, 2009. "Political institutions as substitute for democracy: a political economy analysis of economic growth," Textos para discussão 196, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).
    5. Przeworski,Adam & Alvarez,Michael E. & Cheibub,Jose Antonio & Limongi,Fernando, 2000. "Democracy and Development," Cambridge Books, Cambridge University Press, number 9780521793797, September.
    6. Gasiorowski, Mark J., 1995. "Economic Crisis and Political Regime Change: An Event History Analysis," American Political Science Review, Cambridge University Press, vol. 89(4), pages 882-897, December.
    7. Przeworski,Adam & Alvarez,Michael E. & Cheibub,Jose Antonio & Limongi,Fernando, 2000. "Democracy and Development," Cambridge Books, Cambridge University Press, number 9780521790321, September.
    8. Levy, Victor, 1988. "Aid and growth in Sub-Saharan Africa: The recent experience," European Economic Review, Elsevier, vol. 32(9), pages 1777-1795, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pettersson, Jan, 2003. "Democracy, Consolidation and Growth," Research Papers in Economics 2002:16, Stockholm University, Department of Economics, revised 15 Dec 2004.
    2. Cáceres, Neila & Malone, Samuel W., 2015. "Optimal Weather Conditions, Economic Growth, and Political Transitions," World Development, Elsevier, vol. 66(C), pages 16-30.
    3. Møller, Jørgen & Schmotz, Alexander & Skaaning, Svend-Erik, 2015. "Economic crisis and democratic breakdown in the interwar years: a reassessment," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 40(2), pages 301-318.
    4. Paul J. Burke & Andrew Leigh, 2010. "Do Output Contractions Trigger Democratic Change?," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(4), pages 124-157, October.
    5. Deval Desai & Michael Woolcock, 2012. "The politics of rule of law systems in developmental states: 'political settlements' as a basis for promoting effective justice institutions for marginalized groups," Global Development Institute Working Paper Series esid-008-12, GDI, The University of Manchester.
    6. Michael Storper, 2010. "Why Does a City Grow? Specialisation, Human Capital or Institutions?," Urban Studies, Urban Studies Journal Limited, vol. 47(10), pages 2027-2050, September.
    7. Cáceres, Neila & Malone, Samuel W., 2013. "Forecasting leadership transitions around the world," International Journal of Forecasting, Elsevier, vol. 29(4), pages 575-591.
    8. Teles, Vladimir K & Pereira, Carlos, 2013. "Are Political Institutions Substitutes for Democracy? A Political Economy Analysis of Economic Growth," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 33(1), September.
    9. Jeffrey Edwards & Frank Thames, 2010. "Growth volatility and the interaction between economic and political development," Empirical Economics, Springer, vol. 39(1), pages 183-201, August.
    10. Islam, Muhammed N., 2015. "Economic growth, repression, and state expenditure in non-democratic regimes," European Journal of Political Economy, Elsevier, vol. 37(C), pages 68-85.
    11. Carl Henrik Knutsen, 2012. "Democracy and economic growth: A survey of arguments and results," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 15(4), pages 393-415, December.
    12. Boese-Schlosser, Vanessa A. & Edgell, Amanda B. & Hellmeier, Sebastian & Maerz, Seraphine F. & Lindberg, Staffan I., 2021. "How democracies prevail: democratic resilience as a two-stage process," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 28(5), pages 885-907.
    13. Espen Geelmuyden Rød & Carl Henrik Knutsen & Håvard Hegre, 2020. "The determinants of democracy: a sensitivity analysis," Public Choice, Springer, vol. 185(1), pages 87-111, October.
    14. Bhattacharyya, Sambit, 2009. "Unbundled institutions, human capital and growth," Journal of Comparative Economics, Elsevier, vol. 37(1), pages 106-120, March.
    15. Dutt, Pushan & Mobarak, Ahmed Mushfiq, 2016. "Democracy and policy stability," International Review of Economics & Finance, Elsevier, vol. 42(C), pages 499-517.
    16. Dmitry Ryvkin & Anastasia Semykina, 2017. "An experimental study of democracy breakdown, income and inequality," Experimental Economics, Springer;Economic Science Association, vol. 20(2), pages 420-447, June.
    17. Santiago López-Cariboni & Xun Cao, 2019. "When do authoritarian rulers educate: Trade competition and human capital investment in Non-Democracies," The Review of International Organizations, Springer, vol. 14(3), pages 367-405, September.
    18. Dreher, Axel & Sturm, Jan-Egbert & Vreeland, James Raymond, 2009. "Global horse trading: IMF loans for votes in the United Nations Security Council," European Economic Review, Elsevier, vol. 53(7), pages 742-757, October.
    19. 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, vol. 9(3), pages 1-25, March.
    20. Cingolani, Luciana & Crombrugghe, Denis de, 2012. "Techniques for dealing with reverse causality between institutions and economic performance," MERIT Working Papers 2012-034, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ntu:ntugeo:vol3-iss2-15-132. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stefan Ciucu (email available below). General contact details of provider: https://edirc.repec.org/data/feuntro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.