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CCER讨论稿：Varieties of Experiences: How Do Leaders' Public-Sector Experiences Matter for Economic Performance?

发布日期：2022-05-11 02:54    来源：

E2022006                                                                 2022-05-11

 

Xiangyu Shi,  Tianyang Xi,  Yang Yao

Abstract

Despite an increasing awareness on the importance of political leaders in shaping economic performance, there is little consensus regarding what make a leader good for growth. We argue that the variety of public-sector experiences enhances leaders' capabilities, and use cross-country data of national executives over six decades to test that premise. We explore a novel instrumental variable using leaders' birthplace and a regression discontinuity design using close elections for causal identification. We find a robust positive effect of the variety of leaders' public-sector experiences on growth. Moreover, leaders with more diverse public-sector experiences are positively correlated with a set of indicators of economic and political governance. By contrast, there is no discernible effect of leaders' private-sector experiences on growth. These findings shed light on the recent debates about meritocracy and the rise of political populism in democracies.

Keywords: Variety of Experience (VOE), Leaders, Economic Performance

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