Key determinants of elite rivalry: theoretical insights and empirical evidence

Abstract

The purpose of this study is to empirically examine the key determinants of elite rivalry and identify their main channels of transmission, contributing to the sparse literature on the topic. Our results show that income level, human capital and the system of checks and balances are strong positive determinants of elite rivalry, while natural resources rents and colonization experience are strong negative determinants. This implies that higher education and income per capita levels and a more efficient separation of powers contribute to reduce elite rivalry, while past colonization experience and higher natural resources rents contribute to aggravate it. As regards transmission channels, about 60% of the determining factors' overall effect on elite rivalry is transmitted through the legal system and property rights and the political risk channels. Our empirical findings indicate that more efficient institutional models and specific historical and economic factors, can in fact determine the level of elite rivalry in the long run.