The Role of the State in Economic Development

Guido Tabellini ()

No CESifo Working Paper No. 1256, CESifo Working Paper Series from CESifo GmbH

Abstract: This paper discusses the recent literature on the role of the state in economic development. It concludes that government incentives to enact sound policies are key to economic success. It also discusses the evidence on what happens after episodes of economic and political liberalizations, asking whether political liberalizations strengthen government incentives to enact sound economic policies. The answer is mixed. Most episodes of economic liberalizations are indeed preceded by political liberalizations. But the countries that have done better are those that have managed to open up the economy first, and only later have liberalized their political system.

Keywords: political liberalization; democracy; economic development (search for similar items in EconPapers)
JEL-codes: O10 O11 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev and nep-his
Date: 2004
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Related works:
Working Paper: The Role of the State in Economic Development (2004)
Working Paper: The Role of the State in Economic Development
Journal Article: The Role of the State in Economic Development (2005)
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