This paper argues that domestic social conflicts are a key to understanding why growth rates lack persistence and why so many countries have experienced a growth collapse after the mid-1970s. It emphasizes conflicts interact with external shocks on the one hand, and the domestic institutions of conf...

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Bibliographic Details

Main Author:	Rodrik, Dani 1957- (Author)
Format:	Book
Language:	English
Published:	Cambridge, Mass. 1998
Series:	National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series 6350
Subjects:	Conflits sociaux - Modèles économétriques Crises boursières - Aspect social - Modèles économétriques Développement économique - Aspect social - Modèles économétriques Economische groei Instabiliteit Gesellschaft Wirtschaftsentwicklung Ökonometrisches Modell Economic development > Social aspects > Econometric models Financial crises > Social aspects > Econometric models Social conflict > Econometric models Wirtschaftswachstum
Online Access:	Volltext
Summary:	This paper argues that domestic social conflicts are a key to understanding why growth rates lack persistence and why so many countries have experienced a growth collapse after the mid-1970s. It emphasizes conflicts interact with external shocks on the one hand, and the domestic institutions of conflict-management on the other. Econometric evidence provides support for this hypothesis. Countries that experienced the sharpest drops in growth after 1975 were those with divided societies (as measured by indicators of inequality, ethnic fragmentation, and the like) and with weak institutions of conflict management (proxied by indicators of the quality of governmental institutions, rule of law, democratic rights, and social safety nets).
Physical Description:	29 S. graph. Darst.