A Statistical Study of Political Determinants for Economic Growth

• Published in: Journal of peace research 1969-01, Vol.6 (2), p.113-122
• Main Author: Seierstad, Ståle
• Format: Article
• Language: English
• Subjects: Capital inflows; Developing countries; Economic growth models; Economic models; Elites; Gross domestic product; Group development; Per capita growth; Social groups; Upper class
• ISSN: 0022-3433; 1460-3578
• DOI: 10.1177/002234336900600203

The article presents a few numerical models designed for use in statistical investigations of the impact of political factors upon economic growth in the developing countries. The main assumptions of the models are that economic growth is influenced by (1) the economic level of the country, (2) foreign capital inflow, and (3) political factors. The influence of the economic level of a country is taken into account by using a simple savings function relating per capita savings linearly to GDP per capita. The impact of the political factors is introduced in the models by letting the savings depend also upon those factors. The value of the contribution of foreign capital inflow to GDP growth is assumed to be a third of the value of the inflow itself. While mainly concerned with methodological proposals, the article also presents an empirical investigation of the importance of the political mobilization of various social groups for economic development, and how political integration influences economic growth. The results of this study suggest that the political mobilization of the lower classes in the developing countries may have a positive impact upon the development efforts of these countries.