Effective Information, Political Structure and Economic Growth
Citations
Altmetric:
Abstract
Digital transformation of information led us to reconsider Hayek’s (American Economic Review, 35, 519–530) insight on a fuller use of information and re-classify political structures based on their information protection policies. This allows us to link the accumulation of information with the political structure to frame their joint impact on economic growth. We develop a model of ‘effective information’ beginning with information production and absorption and then allowing for its political propagation based on the degree of information protection. Using data from 40 countries, we find: (i) effective information and its spillovers contribute to an increase in productivity; and (ii) reductions in information protection bring larger increases in effective information as economies near an ‘information-technology frontier’ contributing to economic growth divergence.
Description
Date
2021
Journal Title
Journal ISSN
Volume Title
Publisher
Collections
Research Projects
Organizational Units
Journal Issue
Keywords
Information technology, Economic growth, Spillover effect, Political structure
Citation
Merva, Mary, Adrian Stoian, and Simona Costagli. “Effective Information, Political Structure and Economic Growth.” Economics of Transition and Institutional Change 29 (4): 597–620. 2021.