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Summary: Using a dataset for a panel of 118 countries, this paper shows that changes in the level of education of national populations aged 45 to 64 are positively associated with economic growth. An increase of one percentage point in the share of individuals in this age group who attended secondary education is associated with a 1.2% increase in GDP per capita. In contrast, variation in the level of education in younger cohorts is not positively associated with economic growth. These results suggest that investment in education benefits society, but only in the long‐term. Several possible explanations for this finding are discussed. [ABSTRACT FROM AUTHOR]

This paper investigates the impact of Chinese activities in sub-Saharan African countries with respect to the growth performance of economies in that region. Using a Solow-type growth model and panel data for the period 1991 to 2010, we find that African economies that export natural resources have benefited from positive terms-of-trade effects. In addition, there is evidence for displacement effects of African firms due to competition from China. On the other hand, Chinese foreign investment and aid in Africa does not appear to have a significant impact on African growth. [ABSTRACT FROM AUTHOR]

This paper argues that democracy enhances technological change, the most important determinant of long-term economic growth. It first presents an argument on how and why dictators restrict civil liberties and diffusion of information to survive in office, even if this reduces their personal consumption. The argument predicts that autocracies have slower technological change than democracies, which in turn impairs GDP per capita growth rates. These and other implications from the argument are tested empirically, and so are implications from alternative explanations on the association between democracy and technological change. Drawing on an extensive global dataset, with some time series going back to the early 19th century, the paper reports robust evidence that democracy increases not only technology-induced growth but also net economic growth rates. Notably, the results hold when accounting for the endogeneity of democracy, country-fixed effects, and sample-selection bias. [ABSTRACT FROM AUTHOR]

This paper explores whether the probability of being punished after losing power leads dictators to restrain their level of predation and, thus, increase economic growth. To do so, a simple model of predatory rule is developed, and the consequences of an increasing probability of punishment after loosing power explored. New data on dictators' post-exit fate have permitted to estimate the predicted probability of punishment taking place by using multinomial logit. Outgoing dictators' strength and the international context are shown to be the main determinants of post-exit scenarios. The probability of punishment is proven to have a positive and significant effect on the rate of growth of GDP under alternative specifications of growth regressions. [ABSTRACT FROM AUTHOR]

Panel data studies typically 'average out' the error terms to be five calendar years apart such that they are less influenced by business cycle fluctuations. Using dynamic growth equations over the 'globalization years' of 1986-2004, we provide an examination of the role of government expenditures to GDP (G/Y) in long-run growth. While the yearly time span is actually not prone to serious serial correlation problems, more powerful implications follow: We do observe strong negative long-run effects of G/Y on output growth in yearly time spans, while the averaged-out 5-year panels suggest the long-run economic impact of G/Y is muted. [ABSTRACT FROM AUTHOR]

Summary: We explore whether EU membership has led to faster economic growth. Using different estimation strategies, different time periods, different country samples, and different datasets, we are unable to demonstrate the presence of a membership growth premium. This may reflect that GDP data are too noisy and/or causal identification too complicated, in which case we should remain agnostic about the EU's growth impact. Alternatively, it may reflect that EU membership simply has no effect on economic growth. Either way, these findings urge strong caution about one of EU membership's key alleged benefits: greater economic prosperity. [ABSTRACT FROM AUTHOR]

Summary: Bringing together the classic defense of liberty and democracy, the political economy of hierarchy, endogenous growth theory, and the new institutional economics on growth, we propose a new institutional theory that identifies democracy's unique advantage in prompting economic growth. We contend that the channel of liberty‐to‐innovation is the most critical channel in which democracy holds a unique advantage over autocracy in promoting growth, especially during the stage of growth via innovation. Our theory thus predicts that democracy holds a positive but indirect effect upon growth via the channel of liberty‐to‐innovation, conditioned by the level of economic development. We then present quantitative evidence for our theory. To our best knowledge, we are the first to propose such an indirect and conditional effect of democracy upon economic development and provide systematic evidence. Our study promises to integrate and reconcile many seemingly unrelated and often contradictory theories and evidence regarding regime and growth, including providing a possible explanation for the inconclusive results from regressing overall regime score against the rate of economic growth or change in level of GDP per capita. [ABSTRACT FROM AUTHOR]

Generalized morality reflects ethical norms in society about the inappropriateness of behaviors that can cause harm to others. Generalized morality may be an important factor affecting the economic performance of countries. An indicator of generalized morality is constructed from data from the World Values Survey. One question examined is whether generalized morality is correlated with economic growth rates in per capita GDP across a sample of countries, controlling for institutions and other factors expected to affect economic performance. A second question examined is whether the path by which generalized morality affects growth is direct or indirect through generalized trust. The findings reveal that generalized morality is moderately correlated with economic growth, but its effect appears to be manifested through generalized trust when economic institutions are weak. [ABSTRACT FROM AUTHOR]

Investigates the effects of income inequality on the growth of productivity, capital, and gross domestic product. Role of political instability, income redistribution and human capital channels; Productivity, investment and total effect; Positive relationship between inequality and socio-political instability.