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Economic Growth in Fluid Polities: Evidence from Africa

Sat, August 31, 9:30 to 10:00am, Marriott, Exhibit Hall B South

Abstract

The stability/fluidity of a polity seems likely to matter for economic growth. Yet the scholarship presents mixed views regarding whether economies tend to grow faster under fluid polities or under stable ones. This article investigates this issue in Sub-Saharan Africa. To do so, we assume that the fluidity of a polity can be captured by the extent of systemic change to its party system. On this basis, we apply the recently developed index of party system fluidity, which taps the extent of such change, within a GMM statistical framework. We find that polity/party system fluidity has a net positive effect on growth, but this relationship is conditioned by a country’s democratic qualities. In particular, in autocracies (i.e., countries with a low level of democratic quality), fluidity is associated with more rapid growth; whereas in countries with a relatively high level of democracy, fluidity tends to undermine growth.

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