Political instability, institutional change and economic growth in Brazil since 1870

Campos, N., Karanasos, M., Koutroumpis, P. ORCID: https://orcid.org/0000-0002-2281-7236 and Zhang, Z. (2020) Political instability, institutional change and economic growth in Brazil since 1870. Journal of Institutional Economics, 16 (6). pp. 883-910. ISSN 1744-1374 doi: 10.1017/s174413742000020x

Abstract/Summary

Are institutions a deep cause of economic growth? This paper tries to answer this question in a novel manner by focusing on within-country variation, over long periods of time, using a new hand-collected data set on institutions and the power-ARCH econometric framework. Focusing on the case of Brazil since 1870, our results suggest (a) that both changes in formal political institutions and informal political instability affect economic growth negatively, (b) there are important differences in terms of their short- versus long-run behaviour, and (c) not all but just a few selected institutions affect economic growth in the long-run.