Does Economic Growth Lead to Political Stability?

Martin Paldam
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Martin Paldam: University of Aarhus

Chapter 9 in The Political Dimension of Economic Growth, 1998, pp 171-190 from Palgrave Macmillan

Abstract: Abstract There are two contradictory answers to the question in the title. The first is the good growth hypothesis: economic growth generates higher incomes, which should make people approve of the government. Hence growth generates stability. The second is the destabilizing growth hypothesis: growth generates complex changes in society, and therefore instability. A part of the instability will be political, so that where the political system is not well established, growth could lead to political instability.

Keywords: Public Choice; Income Distribution; Economic Transition; Political Instability; Political Stability (search for similar items in EconPapers)
Date: 1998
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DOI: 10.1007/978-1-349-26284-7_9

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