Nigerian Economic Society
 
Need Help? Call +234 8131213195        Watch Us Live online
Hi Guest,
Home | About Us » | Paper Submission | Signup | Contact Us
       Sunday, April 22, 2018       
THE NEXUS BETWEEN INCLUSIVE INSTITUTIONS AND INCLUSIVE GROWTH: A Game Theoretic Analysis

THE NEXUS BETWEEN INCLUSIVE INSTITUTIONS AND INCLUSIVE GROWTH: A Game Theoretic Analysis

 

Abstract: In recent times, the focus in growth literature has shifted from understanding how countries can achieve economic growth to understanding how they can attain sustainable inclusive growth. Hence, one contemporary interest is to understand why growth is not inclusive in a number of countries, including Nigeria. It is argued in this paper that inclusive growth can be achieved only if institutions (both political and economic) are inclusive. Using the tool of game theory, the paper shows how those who control political power (the political elite) use their power to set up exclusive institutions which put the society on an exclusive growth trajectory. The outcomes of the game show that exclusive institutions emerge and thus, exclusive growth when: (I) elite consumption depend largely on rent that comes mainly from natural resources (such as oil); (ii) elite consumption is a function of market profit; and (iii) the elite are afraid of political replacement. Once a society finds itself on a particular institutional path, there is a self-reinforcing feedback mechanism that persistently keeps the society in the vicious circle. However, the vicious circle of exclusiveness can be broken if: (a) there is broad base coalition among citizens; (b) there is significant increase in citizen de jure power; or © it becomes difficult for the elite to solve their collective problems, and (d) the elite are incentivized to choose inclusive institutions.

JEL classification: C70, D72, P16

Price: N500.00 | Add to cart
 

 

 

Login

Email:
Password:
 
Lost password ?
New user? Signup free !
Note: You must signup your email and create a password before you can register as an NES member
 

Latest News

Training on Statistical Analysis: Using SPSS in Financial Sector Analysis

We are pleased to announce the first training in 2018 on the "Statistical Analysis: Using SPSS in Fi...read more


59th Annual Conference of the Nigerian Economic Society: Call for Abstracts

The Executive Council of NES has the pleasure to announce 59th Annual Conference with the theme "OPT...read more


2018 Nigerian Economic Society Annual Public Lecture Announcement

The Executive Council of NES has the pleasure to announce it's 2018 Annual Public Lecture with the t...read more


  Email Subscription