The Co-Evolution of Economic and Political Development

Publication Type

Conference Paper

Publication Date

9-2006

Abstract

This paper establishes a simple model of long run economic and political development, which is driven by the inherent technical features of different factors in production, and political conflicts among factor owners on how to divide the outputs. The main capital form in economy evolves from land to physical capital and then to human capital, which enables the respective factor owners (landlords, capitalists, and workers) to gain political powers in the same sequence, shaping the political development path from monarchy to elite ruling and finally to full suffrage. 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 conflicts 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 Science

Research Areas

Macroeconomics

Publication

International Conference on Lessons from History

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