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The Political Economy of Inclusive Rural Growth

Author

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  • Michael Carter
  • John Morrow
Abstract
Commentators on the `East Asian Miracle' of inclusive growth have often pointed toward shared rural growth policies. But why were these policies not chosen elsewhere? This paper models voters who invest in either subsistence or a complex technology in which public goods complement private capital. Investment and technology choices vary with wealth and the level of public goods enforced by political lobbies. Outcomes depend on the strength of the incipient middle class who bolster political incentives through contributions. Economies with a stronger middle class due to lower inequality or lower risk may thereby sustain higher productivity through public good provision.

Suggested Citation

  • Michael Carter & John Morrow, 2014. "The Political Economy of Inclusive Rural Growth," CEP Discussion Papers dp1259, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp1259
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    References listed on IDEAS

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    Cited by:

    1. Michuda, Aleksandr, 2018. "Political Contributions and Land Reform Delay: The Case of South Africa," 2018 Annual Meeting, August 5-7, Washington, D.C. 274365, Agricultural and Applied Economics Association.

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    More about this item

    Keywords

    Poverty traps; political economy; inequality; lobby formation;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • D2 - Microeconomics - - Production and Organizations
    • H4 - Public Economics - - Publicly Provided Goods
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

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