Theory of Social Transformation, Political Transition and Economic Growth

Posted: 23 Nov 2012

See all articles by Said Boakye

Said Boakye

University of Colorado at Boulder

Multiple version iconThere are 2 versions of this paper

Date Written: 2012

Abstract

In this paper, I develop a model of sociopolitical transition that links the sociopolitical transformational process of countries to the dynamic process of output per capita and economic growth. Social polarization breeds discriminatory practices regarding government redistribution. This brings about inefficient allocation of resources away from production to political power struggle, leading to poor economic outcomes. However, the model shows that social integrative processes may correct this inefficiency over time depending on the degree of social fractionalization, the level of social distance between the groups, the level of production technology, etc. Even though the model predicts long-run convergence of growth rates and output per capita across countries, it shows possible prolonged divergence of these economic variables.

Keywords: Economic growth, Polarization, Integration

JEL Classification: O41, O43

Suggested Citation

Boakye, Said, Theory of Social Transformation, Political Transition and Economic Growth (2012). Economic Systems, Vol. 36, No. 3, 2012. Available at SSRN: https://ssrn.com/abstract=2179597

Said Boakye (Contact Author)

University of Colorado at Boulder ( email )

1070 Edinboro Drive
Boulder, CO 80309
United States

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