The Political Determinants of Economic Performance
Political Competition and the
Sources of Growth
Pablo M. Pinto
Columbia University
Jeffrey F. Timmons
Instituto Tecnol—gico Aut—nomo de MŽxico
Comparative
Political Studies, Vol. 38, No. 1, 26-50 (2005)
DOI: 10.1177/0010414004270886
© 2005 SAGE Publications
Abstract: The
authors present and test a theory about the effects of political competition
on the sources of economic growth. Using Mankiw, Romer, and WeilÕs 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, explainingwhy democracy itself may
be ambiguous. These findings help clarify the debate
about regime type and economic performance and suggest new
avenues for research.
Key Words: political
competition ¥ economic growth ¥ human capital ¥ productivity ¥ investment
Regression results not reported in published
version of paper:
Table 1: Effect
of Political Competition on Investment
Table 2: Effect
of Political Competition on Labor Supply
Table 3: Effect
of Political Competition on Secondary Education Enrollment
Table 4: Effect
of Political Competition on Contribution of Investment to Growth
Table 5: Effect
of Political Competition on Foreign Direct Investment
Table 6: Effect
of Political Competition on Trade
Replication Data: download. See article for data description,
sources and models.