Institutions, Democracy and Growth in the Very Long Run

Acta Oeconomica, Volume 63 #4 2013 pp. 493-510

18 Pages Posted: 21 Mar 2013 Last revised: 9 Mar 2017

See all articles by Konstantin Yanovskiy

Konstantin Yanovskiy

Shomron Center for Economic Policy Research

Sergey Shulgin

Russian Presidential Academy of National Economy and Public Administration (RANEPA) - Institute of Applied Economic Research

Date Written: 2011

Abstract

In this paper we tested the hypothesis of the "political" basis for the "economic" rights. We constructed our own variables of political regimes' classification for years 1820-2000. We found significant positive interdependencies between the Democracy's indicators and Economic Growth. Protection of the Private property rights requires, first and foremost, due guaranties for the personal immunity as a key precondition. Power to arrest discretionary undermines any formal guaranties of private property, low taxation benefits etc. Personal immunity should be defended even for "unpleasant" person (say, H. Ford or W. Gates) or for the chieftains' challengers (to make "rights of the meanest … respectable to the greatest"). It means the free speech; religious freedom and other "political rights" should be respected. Democracy, as political competition system weakens governments' power to break personal freedoms and property rights. Here is presented version of the paper initially accepted for publication in 2011 (unedited).

Keywords: Rule of Law, Rule of Force, Personal Rights, Private Property Protection, Economic Growth

JEL Classification: P16, P50, N40, O43

Suggested Citation

Yanovskiy, Konstantin and Shulgin, Sergey, Institutions, Democracy and Growth in the Very Long Run (2011). Acta Oeconomica, Volume 63 #4 2013 pp. 493-510 , Available at SSRN: https://ssrn.com/abstract=2236320

Konstantin Yanovskiy (Contact Author)

Shomron Center for Economic Policy Research ( email )

Kley Shir 8
Karney Shomron, 44855

Sergey Shulgin

Russian Presidential Academy of National Economy and Public Administration (RANEPA) - Institute of Applied Economic Research ( email )

Russia

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