Why are Presidential Regimes Bad for the Economy?: Understanding the Link Between Forms of Government and Economic Outcomes

Presidential regimes are detrimental to the economy due to weaker institutions, higher inflation, and income inequality. Quality institutions can mitigate these negative impacts, but having a presidential regime induces weaker institutions.

Format: Hardback
Length: 92 pages
Publication date: 27 December 2022
Publisher: Taylor & Francis Ltd

Recent evidence suggests that countries operating under presidential regimes face inferior macroeconomic outcomes compared to those with parliaments. These outcomes include lower levels of economic growth, higher rates of inflation, and greater levels of income inequality. Despite this, many heads of state are seeking to consolidate and expand their executive power. This book aims to explore why presidential regimes, in particular, are detrimental to the economy.

Throughout the book, the authors examine the impact of legal, political, and economic institutions on the mechanisms that shape these regimes. They begin by demonstrating that presidential countries, on average, experience inferior outcomes in terms of these institutions and various healthcare and human development indicators.

Subsequently, the book delves into the influence of constitutional choice, whether parliamentary or presidential, on both institutions and macroeconomic outcomes. It is documented that having a presidential regime weakens institutions, but that the presence of high-quality institutions can mitigate some of the negative impacts of such regimes.

The authors also explore the political and economic factors that contribute to the prevalence of presidential regimes. They examine the historical roots of presidentialism in different regions and the role of political elites, economic interests, and social factors in shaping the institutional arrangements of countries.

The book concludes by offering insights into the potential reforms that can be implemented to improve the economic performance of countries with presidential regimes. It suggests that measures such as strengthening institutions, promoting economic diversification, and reducing corruption can help to mitigate the negative impacts of presidentialism and promote sustainable economic growth.

Overall, this book provides a comprehensive and insightful analysis of the economic consequences of presidential regimes, offering valuable insights for policymakers, scholars, and anyone interested in understanding the dynamics of political and economic systems.

Weight: 242g
Dimension: 143 x 223 x 15 (mm)
ISBN-13: 9780367692865