Edward Elgar Publishing politics, institutions and the economic performance of nations

Why do some countries have faster rates of economic growth than others? The relationship between economic growth and the political structure of a country has long been explored in an attempt to understand why some countries experience faster rates of growth than others. This book explores these issues from a new in-depth perspective, challenging conventional theory which claims that democracy promotes economic growth. In examining the economic consequence of politics and institutions, the author provides an extensive critical review of 47 empirical studies. This previous research on the relationship between political and institutional systems and economic policy and growth is analysed and its conclusions questioned. Clemens Siermann then creates a new up-to-date data set on the causality between political and institutional factors and economic variables. In examining the relationship between economic growth, institutional systems and political stability, the author assesses their impact on inflation, fiscal policy, central bank independence, budget deficits, public debt and the investment-income ratio. In conclusion, he argues, that political stability, rather than the type of political system, is a key factor in explaining the differences in the rates of economic growth between countries. This insightful new book will be of interest to economists, political scientists, researchers and post-graduates working in the fields of political economy, growth theory and economic development.