This paper puts forth a theory to explainwhy special interest groups are more prevelant in some countries. Its thesis is that uneven industrialization facilitates the formation of special interest groups with monopoly control over factor supplies. An uneven industrial structure is both an artifact of underdevelopment in a country due to a history of high innovation costs, and a feature of society that further impeded development via its effect on the creation of special interest groups. In this sense, slow development sows a seed for slower development. We argue that the theory is potentially useful for explaining the fall in the median growth rate of developing nations since 1980
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Paper provided by Society for Economic Dynamics in its series 2004 Meeting Papers with number
273.
Length: Date of creation: 2004 Date of revision: Handle: RePEc:red:sed004:273
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