Political Instability, Institutional Change and Economic Growth in Brazil Since 1870

Journal of Institutional Economics, Forthcoming

46 Pages Posted: 14 May 2020

See all articles by Nauro Campos

Nauro Campos

University College London

Menelaos Karanasos

Brunel University London - Economics and Finance

Panagiotis Koutroumpis

Queen Mary University London; Georgia Institute of Technology

Zihui Zhang

Independent Researcher

Date Written: April 20, 2020

Abstract

Are institutions a deep cause of economic growth? This paper tries to answer this question in a novel manner by focusing on within-country variation, over long periods of time, using a new hand-collected data set on institutions and the power-ARCH econometric framework. Focusing on the case of Brazil since 1870, our results suggest:

(a) that both changes in formal political institutions and informal political instability affect economic growth negatively,

(b) there are important differences in terms of their short- versus long-run behaviour, and

(c) not all but just a few selected institutions affect economic growth in the long-run.

Keywords: Economic Growth, Institutions, Political Instability, Power-ARCH, Volatility

JEL Classification: C14, O40, E23, D72

Suggested Citation

Campos, Nauro and Karanasos, Menelaos and Koutroumpis, Panagiotis and Zhang, Zihui, Political Instability, Institutional Change and Economic Growth in Brazil Since 1870 (April 20, 2020). Journal of Institutional Economics, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3580773

Nauro Campos

University College London ( email )

Gower Street
London, WC1E 6BT
United Kingdom

Menelaos Karanasos

Brunel University London - Economics and Finance ( email )

Uxbridge UB8 3PH
United Kingdom

Panagiotis Koutroumpis (Contact Author)

Queen Mary University London ( email )

Office GC 3.32
Graduate Centre, Mile End Campus
London, E14NS
United Kingdom
02078825872 (Phone)

HOME PAGE: http://www.pkoutroumpis.com

Georgia Institute of Technology ( email )

Atlanta, GA 30332
United States

Zihui Zhang

Independent Researcher ( email )

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