Economics at your fingertips  

Political Competition Between Countries and Economic Growth

Azam Chaudhry and Phillip Garner ()

Review of Development Economics, 2006, vol. 10, issue 4, 666-682

Abstract: Political competition between European countries has been viewed as being a stimulus to the innovation process and part of the reason why Europe was the first region of the world to experience sustained growth. Countries that fell behind their rivals technologically and economically became more vulnerable to exploitation. In this way, the presence of rival states provided added incentive to innovate. This paper uses a simple model of conflict between countries to study the role of political competition in economic growth. The governments of each country are threatened politically by innovation and, hence, face a trade‐off between the stability of their regime and keeping up with their rivals. The model shows that “institutional spillovers,” such as a decrease in the level of rent‐seeking in one country, can affect growth in a competing country. Thus, political fragmentation can be growth enhancing as it can result in more political competition.

Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16) Track citations by RSS feed

Downloads: (external link)

Related works:
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:

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1363-6669

Access Statistics for this article

Review of Development Economics is currently edited by E. Kwan Choi

More articles in Review of Development Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2019-09-12
Handle: RePEc:bla:rdevec:v:10:y:2006:i:4:p:666-682