How important are political rules for economic growth? Recent work at the Research Institute of Industrial Economics supports theories that changes in political institutions can be key determinants of economic institutions and growth.
Björn Tyrefors Hinnerich, Erik Lindgren and Per Pettersson-Lidbom examined the impact of Sweden’s 1862 suffrage reform, which extended the voting rights of industrialists. Using a unique data set they found that the reform was a key factor in Sweden’s growth miracle because it gave industrialists more political clout, kick-starting the process.
