Publication Type
Working Paper
Version
publishedVersion
Publication Date
8-2007
Abstract
This paper establishes a simple model of long run economic and political development, which is driven by the inherent technical features of di¤erent production factors and the political con‡icts among factor owners on how to divide the outputs. The main production factor in economy evolves from land to physical capital and then to human capital, which enables their respective owners (landlords, capitalists, and workers) to gain political power in the same sequence, shaping the political development path from monarchy to oligarchy and …nally to democracy with full su¤rage. When it is too costly for any group of factor owners to repress others, political compromise is reached and economic progress is not blocked; otherwise, the political con‡icts may lead to economic stagnation.
Keywords
Economic Development, Political Development, Democratization, Class Structure, Land, Physical Capital, Human Capital, Monarchy, Oligarchy, Democracy, Suffrage Extension
Discipline
Growth and Development | Political Economy
Research Areas
Applied Microeconomics
First Page
1
Last Page
37
Publisher
SMU Economics and Statistics Working Paper Series, No. 07-2007
City or Country
Singapore
Citation
HUANG, Fali.
The Coevolution of Economic and Political Development. (2007). 1-37.
Available at: https://ink.library.smu.edu.sg/soe_research/1213
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.