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