The Coevolution of Economic and Political Development

29 Pages Posted: 4 Aug 2006

See all articles by Fali Huang

Fali Huang

Singapore Management University - School of Social Sciences

Date Written: August 2006

Abstract

This paper establishes a simple model of long run economic and political development, which is driven by the inherent technical features of different factors in production, and political conflicts among factor owners on how to divide the outputs. The main capital form in economy evolves from land to physical capital and then to human capital, which enables their respective owners (landlords, capitalists, and workers) to gain political powers in the same sequence, shaping the political development path from monarchy to elite ruling and finally to full suffrage. When it is too costly for any group of factor owners to repress others, political compromise is reached and economic progress is not blocked; otherwise, the political conflicts may lead to economic stagnation.

Keywords: Economic Development, Political Development, Class Structure, Land, Physical Capital, Human Capital, Monarchy, Suffrage Extension

JEL Classification: O10, O40, P16, N10

Suggested Citation

Huang, Fali, The Coevolution of Economic and Political Development (August 2006). Available at SSRN: https://ssrn.com/abstract=921793 or http://dx.doi.org/10.2139/ssrn.921793

Fali Huang (Contact Author)

Singapore Management University - School of Social Sciences ( email )

90 Stamford Road
Singapore, 178903
Singapore
65-68280859 (Phone)
65-68280833 (Fax)

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