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Does national leaders’ work experience matter for economic growth?

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  • Shi, Xiangyu

Abstract

I examine the effects of national leaders’ work experience on economic growth. Exploiting a cross-country panel data set that covers 135 countries and 60 years (1950–2010), I find that leaders’ richness of experience in public sectors (REPS) has significant and positive impacts on economic growth. I employ random leadership transitions and a regression discontinuity approach based on close elections to establish causality. I also rule out the case that better growth trajectories lead to the selection of more experienced leaders. REPS also improves various economic and political outcomes. Leaders’ work experience in private sectors does not have discernible effects on economic growth.

Suggested Citation

  • Shi, Xiangyu, 2024. "Does national leaders’ work experience matter for economic growth?," Economics Letters, Elsevier, vol. 235(C).
    • Handle: RePEc:eee:ecolet:v:235:y:2024:i:c:s016517652300530x
    DOI: 10.1016/j.econlet.2023.111504
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    More about this item

    Keywords

    National leaders; Work experience; Public sectors; Human capital; Economic growth;
    All these keywords.

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General

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