Economic Growth and Institutional Reform in Modern Monarchies and Republics:: A Historical Cross-Country Perspective 1820-2000

Christian Bjornskov () and Peter Kurrild-Klitgaard ()

No 08-15, Working Papers from University of Aarhus, Aarhus School of Business, Department of Economics

Abstract: Standard theoretical arguments suggest that republics ought to grow faster than monarchies and experience lower transitional costs following reforms. We employ a panel of 27 countries observed from 18202000 to explore whether regime types and institutional reforms have differential growth effects in monarchies and republics. A set of Barrotype regressions show that there are no significant growth differences between the two regime types and that the effects of incremental reforms do not differ between them, but that those of largescale reforms do. Specifically, we find a strong “valleyoftears” effect of large reforms in republics while monarchies benefit from such reforms in the tenyear perspective adopted here. We offer some tentative thoughts on the underlying mechanisms responsible for the results.

Keywords: Growth; Institution; Reform; Monarchy (search for similar items in EconPapers)
JEL-codes: D72 N00 O10 P14 P16 P17 P48 P51 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-fdg and nep-his
Date: 2008-07-30

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