The Political Determinants of Economic Performance. Political Competition and the Sources of Growth

Comparative Political Studies, Vol. 38, pp. 26-50, 2005

Posted: 8 May 2008

Abstract

The authors present and test a theory about the effects of political competition on the sources of economic growth. Using Mankiw, Romer, and Weil's model of economic growth and data for roughly 80 countries, the authors show that political competition decreases the rate of physical capital accumulation and labor mobilization but increases the rate of human capital accumulation and (less conclusively) the rate of productivity change. The results suggest that political competition systematically affects the sources of growth, but those effects are cross-cutting, explaining why democracy itself may be ambiguous. These findings help clarify the debate about regime type and economic performance and suggest new avenues for research.

Keywords: political competition, economic growth, human capital, productivity, investment

JEL Classification: O40, E60, P16, P26

Suggested Citation

Pinto, Pablo M. and Timmons, Jeffrey F., The Political Determinants of Economic Performance. Political Competition and the Sources of Growth. Comparative Political Studies, Vol. 38, pp. 26-50, 2005, Available at SSRN: https://ssrn.com/abstract=1128202

Pablo M. Pinto (Contact Author)

University of Houston ( email )

TX 77204-3011
United States
7137432540 (Phone)

HOME PAGE: http://pablopinto.com

Jeffrey F. Timmons

NYU Abu Dhabi ( email )

PO Box 129188
Abu Dhabi
United Arab Emirates
(971) 262 84523 (Fax)

HOME PAGE: http://https://nyuad.nyu.edu/en/academics/faculty/jeffrey-timmons.html

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