Corporatism, policies and growth

We investigate whether "corporatist" wage setting and policy making institutions negatively affect a) the slope of the growth path of the economy, by yielding decisions that resist the introduction of technological progress; b) the position of the growth path, through higher transaction costs involved in the policy decision making process. The estimates reveal: a) a negative partial correlation between corporatism and growth; b) a robust correlation between growth, union pervasiveness and other policy regressors; c) no significant correlation between corporatism and output level.