Working paper 5
This paper is an assessment of what we know about the political determinants of economic growth. It begins by setting out the stylized facts of economic growth. The paper suggests that there is a need to shift away from much of the previous literature’s emphasis on the determinants of long-run average economic growth (including political determinants), to an understanding of the determinants of within-country growth patterns. The paper proposes a conceptual framework to understand the political channels of within-country growth. Using this framework, it reviews the theoretical and empirical literature on the political determinants of economic growth. It argues that the theoretical and empirical literature do not provide an adequate understanding as yet of the political dynamics of economic growth, and suggests future directions for research in this area.