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Theory of social transformation, political transition and economic growth

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  • Boakye, Said

Abstract

In this paper, I develop a model of sociopolitical transition that links the sociopolitical transformational process of countries to the dynamic process of output per capita and economic growth. Social polarization breeds discriminatory practices regarding government redistribution. This brings about inefficient allocation of resources away from production to political power struggle, leading to poor economic outcomes. However, the model shows that social integrative processes may correct this inefficiency over time depending on the degree of social fractionalization, the level of social distance between the groups, the level of production technology, etc. Even though the model predicts long-run convergence of growth rates and output per capita across countries, it shows possible prolonged divergence of these economic variables.

Suggested Citation

  • Boakye, Said, 2012. "Theory of social transformation, political transition and economic growth," Economic Systems, Elsevier, vol. 36(3), pages 411-425.
    • Handle: RePEc:eee:ecosys:v:36:y:2012:i:3:p:411-425
    DOI: 10.1016/j.ecosys.2012.07.002
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    2. Imrul Hossain Chowdhury, 2020. "Extended Exogenous Growth Model: Application and Investigation the Long-Term Growth Determinants of Bangladesh," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(1), pages 35-53, January.
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    4. Khemraj, Tarron, 2013. "Bi-communalism and the economic origins of democracy: a case study," MPRA Paper 47288, University Library of Munich, Germany.
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    6. Valentinov, Vladislav, 2015. "From equilibrium to autopoiesis: A Luhmannian reading of Veblenian evolutionary economics," Economic Systems, Elsevier, vol. 39(1), pages 143-155.

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    More about this item

    Keywords

    Economic growth; Polarization; Integration;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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