Published in
International Interactions, 2011
Abstract
This paper argues, through investigating a broad set of historical cases and developing a formal theoretical model, that the type of security threat a dictatorial regime faces has implications for economic policy making, and consequently economic outcomes. Dictators who mainly face internal rivals, either contending elites or democratization movements, often have incentives to conduct policies that are harmful to economic development. However, dictators who mainly face external security threats are more likely to generate economic development-enhancing policies. Type of security threat facing a dictator thus contributes to explaining the large variation in economic development among dictatorships.