EconPapers    
Economics at your fingertips  
 

Autocracies and Development in a Global Economy: A Tale of Two Elites

Anders Akerman (), Anna Larsson Seim () and Alireza Naghavi ()

Center for Economic Research (RECent) from University of Modena and Reggio E., Dept. of Economics

Abstract: Data on the growth performances of countries with similar comparative (dis)advantage and political institutions reveal a striking variation across world regions. While some former autoc- racies such as the East Asian growth miracles have done remarkably well; others such as the Latin American economies have grown at much lower rates. In this paper; we propose a political economy explanation of these diverging paths of development by addressing the preferences of the country?s political elite. We build a theoretical framework where factors of production owned by the political elites di¤er across countries. In each country; the incumbent autocrat will cater to the preferences of the elites when setting trade policy and the property rights regime. We show how stronger property rights may lead to capital accumulation and labor reallocation to the manufacturing sector. This; in turn; can lead to a shift in the comparative advantage; a decision to open up to trade and an in?ow of more productive foreign capital. Consistent with a set of stylised facts on East Asia and Latin America; we argue that strong property rights are crucial for success upon globalization.

Keywords: Autocracy; Growth; Political Elites; Landowners; Capitalists; Growth Miracles; Trade; Comparative Advantage; Capital Mobility; Property Rights (search for similar items in EconPapers)
JEL-codes: F10 F20 P14 P16 O10 O24 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-opm, nep-pol and nep-sea
Date: 2011-06
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.recent.unimore.it/wp/RECent-wp65.pdf (application/pdf)

Related works:
Working Paper: Autocracies and Development in a Global Economy: A Tale of Two Elites (2011) Downloads
Working Paper: Autocracies and Development in a Global Economy: A Tale of Two Elites (2011) Downloads
Working Paper: Autocracies and Development in a Global Economy: A Tale of Two Elites (2011) Downloads
Working Paper: Autocracies and Development in a Global Economy: A Tale of Two Elites (2011) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:mod:recent:065

Access Statistics for this paper

More papers in Center for Economic Research (RECent) from University of Modena and Reggio E., Dept. of Economics
Contact information at EDIRC.
Series data maintained by ().

 
Page updated 2014-08-13
Handle: RePEc:mod:recent:065