Dictatorial Institutions and their Impact on Economic Growth

Abstract

Abstract Non-democratic regimes vary in the degree to which domestic groups threaten their rule and the extent to which they need the cooperation of these groups. To both neutralize threats to their rule and solicit cooperation, some dictators coopt potential domestic opposition by providing rents and policy concessions within nominally-democratic institutions, such as legislatures and political parties. These institutions, designed as instruments of cooptation, facilitate cooperation between the regime and outside groups which promotes economic growth.