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

Anders Akerman, Anna Larsson () and Alireza Naghavi
Authors registered in the RePEc Author Service: Anna Seim

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

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 O10 O24 P14 P16 (search for similar items in EconPapers)
Pages: pages 39
Date: 2011-06
New Economics Papers: this item is included in nep-opm, nep-pol and nep-sea
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Related works:
Working Paper: Autocracies and Development in a Global Economy: A Tale of Two Elites (2011)
Working Paper: Autocracies and Development in a Global Economy: A Tale of Two Elites (2011)
Working Paper: Autocracies and Development in a Global Economy: A Tale of Two Elites (2011)
Working Paper: Autocracies and Development in a Global Economy: A Tale of Two Elites (2011)
Working Paper: Autocracies and Development in a Global Economy: A Tale of Two Elites (2011)
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