Special-Interest Groups and Growth

31 Pages Posted: 27 Jul 2007 Last revised: 3 Jun 2015

See all articles by Dennis Coates

Dennis Coates

University of Maryland, Baltimore County

Jac C. Heckelman

Wake Forest University - Department of Economics

Bonnie Wilson

Saint Louis University - Department of Economics

Date Written: March 1, 2010

Abstract

This paper explores empirically the relation between special-interest groups and economic growth. Our analysis exploits new data on the number of groups observed across countries and time, in order to mitigate the identification problems associated with earlier studies. Also in contrast to earlier work, we examine the impact of groups on two sources of growth - capital accumulation and technological change - in addition to the impact of groups on output growth. The findings are consistent with Olson's (1982) claim that societies with greater numbers of interest groups grow slower, accumulate less capital, and experience reduced productivity growth relative to others.

Keywords: special interest groups, institutional sclerosis, economic growth

JEL Classification: O1, O4, D7

Suggested Citation

Coates, Dennis and Heckelman, Jac C. and Wilson, Bonnie, Special-Interest Groups and Growth (March 1, 2010). Public Choice, Vol. 147, 2011, Available at SSRN: https://ssrn.com/abstract=1002480 or http://dx.doi.org/10.2139/ssrn.1002480

Dennis Coates

University of Maryland, Baltimore County ( email )

1000 Hilltop Circle
Baltimore, MD 21250
United States
410-455-3243 (Phone)
410-455-1054 (Fax)

Jac C. Heckelman

Wake Forest University - Department of Economics ( email )

P.O. Box 7505
Winston-Salem, NC 27109
United States
(336) 758-5923 (Phone)
(336) 758-6028 (Fax)

HOME PAGE: http://www.wfu.edu/~heckeljc/jac.htm

Bonnie Wilson (Contact Author)

Saint Louis University - Department of Economics ( email )

3674 Lindell Boulevard
Saint Louis, MO 63108
United States

HOME PAGE: http://https://sites.google.com/a/slu.edu/bonnie_wilson/

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