Reconsidering the modernization hypothesis: The role of diversified production and interest-group competition

Giovanni B. Pittaluga; Alessio Reghezza; Elena Seghezza

doi:10.1016/j.ejpoleco.2020.101929

Reconsidering the modernization hypothesis: The role of diversified production and interest-group competition

Giovanni B. Pittaluga
, Alessio Reghezza
, Elena Seghezza

Ysgol Busnes Albert Gubay

University of Genoa

Allbwn ymchwil: Cyfraniad at gyfnodolyn › Erthygl › adolygiad gan gymheiriaid

78 Wedi eu Llwytho i Lawr (Pure)

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The modernization hypothesis attributes democracy to higher incomes. The hypothesis has been controversial with claims of no relationship or opposite causality. Using data on a large sample of countries over the period from 1995 to 2015, we show empirically that the hypothesis is valid by studying the role of diversified production and interest-group competition. Production diversification increases incomes and is associated with emergence of competing organized interest groups representing the different diversified sectors. The interest-group competition underlies democracy by restraining rent seeking for benefits that would otherwise be sought through single-decision-maker authoritarian government.

Iaith wreiddiol	Saesneg
Rhif yr erthygl	101929
Cyfnodolyn	European Journal of Political Economy
Cyfrol	65
Dyddiad ar-lein cynnar	14 Awst 2020
Dynodwyr Gwrthrych Digidol (DOIs)	https://doi.org/10.1016/j.ejpoleco.2020.101929
Statws	Cyhoeddwyd - Rhag 2020

Mynediad at Ddogfen

10.1016/j.ejpoleco.2020.101929

2020 The Role of Diversified Production Llawysgrif awdur wedi’i dderbyn, 348 KB

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abstract = "The modernization hypothesis attributes democracy to higher incomes. The hypothesis has been controversial with claims of no relationship or opposite causality. Using data on a large sample of countries over the period from 1995 to 2015, we show empirically that the hypothesis is valid by studying the role of diversified production and interest-group competition. Production diversification increases incomes and is associated with emergence of competing organized interest groups representing the different diversified sectors. The interest-group competition underlies democracy by restraining rent seeking for benefits that would otherwise be sought through single-decision-maker authoritarian government.",

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author = "Pittaluga, \{Giovanni B.\} and Alessio Reghezza and Elena Seghezza",

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N2 - The modernization hypothesis attributes democracy to higher incomes. The hypothesis has been controversial with claims of no relationship or opposite causality. Using data on a large sample of countries over the period from 1995 to 2015, we show empirically that the hypothesis is valid by studying the role of diversified production and interest-group competition. Production diversification increases incomes and is associated with emergence of competing organized interest groups representing the different diversified sectors. The interest-group competition underlies democracy by restraining rent seeking for benefits that would otherwise be sought through single-decision-maker authoritarian government.

AB - The modernization hypothesis attributes democracy to higher incomes. The hypothesis has been controversial with claims of no relationship or opposite causality. Using data on a large sample of countries over the period from 1995 to 2015, we show empirically that the hypothesis is valid by studying the role of diversified production and interest-group competition. Production diversification increases incomes and is associated with emergence of competing organized interest groups representing the different diversified sectors. The interest-group competition underlies democracy by restraining rent seeking for benefits that would otherwise be sought through single-decision-maker authoritarian government.

KW - Interest groups

KW - Modernization

KW - Production diversification

U2 - 10.1016/j.ejpoleco.2020.101929

DO - 10.1016/j.ejpoleco.2020.101929

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Reconsidering the modernization hypothesis: The role of diversified production and interest-group competition

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