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- W1591367874 abstract "Why do so many African governments adopt predatory policies towards the private sector, when pro-growth reforms might yield greater tax revenues as well as higher national income? In this paper we first use a growth regression which, controlling for the factors identified in previous studies, identifies taxation of primary exports and investment in agricultural R&D as independently significant correlates of economywide growth. We then posit a game-theoretic political economy model in which the government sets these two policy instruments in strategic interaction with domestic producers. We find significant evidence that some African policymakers could be trapped in a low-growth equilibrium, which they can break only when changes in game structure (and hence institutions such as political parties) allow them to make credible commitments to pro-growth, low-tax/high-investment strategies. Aknowledgements Many thanks to Andrew Warner and Phil Pardey for sharing data, and to USAID’s collaborative agreement on Equity and Growth through Economic Research (EAGER) for financial support. mcmillangrowth&policy.doc February 19, 1999 Growth and Policy in Africa p. 1 Growth and Policy in Africa: A strategic-interaction model of predatory regimes" @default.
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- W1591367874 date "1999-01-01" @default.
- W1591367874 modified "2023-09-26" @default.
- W1591367874 title "A Political Economy Model of Agricultural Taxation, R&D, and Growth in Africa" @default.
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