Empirical Linkages Between Democracy and Economic Growth


Book Description

Using cross-sectional and pooled data for up to 125 countries over the period from 1960 to 1985, this paper evaluates the two-way linkages between democracy and economic growth. The effects of income on democracy are found to be robust and positive. The effects of several measures of democracy on growth are assessed in a comparative growth framework in which growth of per capita GDP depends negatively on initial income levels, as implied by the convergence hypothesis, and positively on rates of investment in physical and human capital. Adjusting for the simultaneous determination of income and democracy makes the estimated direct effect of democracy on subsequent economic growth negative but insignificant. Allowing for the possible positive indirect effect of democracy on income, flowing through the positive effect of democracy on education and investment, tends to offset the negative direct effect of democracy on economic growth. The general result of the growth analysis is that it is still not possible to identify any systematic net effects of democracy on subsequent economic growth.




Democracy, Governance, and Economic Performance


Book Description

A theoretical and empirical examination of why political institutions and organizations matter in economic growth.




The Relationship Between Democracy and Economic Growth an Empirical Study for Post-Communist Transition


Book Description

Master's Thesis from the year 2010 in the subject Politics - International Politics - Topic: Globalization, Political Economics, grade: A, Uppsala University (Social Science), course: Eurasian Studies, language: English, abstract: The relationship between democracy and economic development is a subject of social studies since 19th century. With witnessing the dramatic collapses of authoritarian regimes in many different parts of the world the discussion is still relevant to guidance for transition societies such as East European and Eurasian regions. The aim of this paper is first to review the relevant discussion about the relationship between democratic and economic consolidation and secondly to answer this following questions; "is there any relationship between degree of democracy and economic growth for post communist transition? According to my findings for post communist countries, there is not any significant relationship between economic growth and democratic consolidation. One possible explanation of this result could be uniqueness of post communist transition and countries own historical and cultural legacies.




Does Liberté


Book Description







The Relationship Between Democratization and Maintained Economic Success


Book Description

For decades, prominent democracies, including the United States, have encouraged--and in some cases even forced--democracy in other countries on the basis that it is the best solution for countries' political and economic issues. Since the next few decades are a key time for currently developing countries to become significant forces in the world economy, many with non-democratic political systems, it is necessary to understand what the best course of action is to encourage domestic economic growth. Supporting economic growth in these countries is imperative for the future of the global economy. Using multivariate and simple linear regressions, this study examines the connection between degrees of democracy and maintained economic success. This study finds compelling evidence that the relationship between degree of democracy and economic success over time is insignificant. Alone, degree of democracy seems to have a negative impact on economic success, but the introduction of other variables decreases democratization's impact. Though democracy is successful in wealthy countries, it may not be the answer for creating and maintaining economic success.




Inequality, Democracy, and Economic Development


Book Description

Examines the sources of democracy, the relationship between economic development and thresholds of democracy, and responses to democratization.




The Relationship Between Economic Growth and Democracy


Book Description

This study investigates the relationship between economic growth and democracy by estimating a nation's production function specified as static and dynamic models using panel data. In estimating the production function, it applies a single time trend, multiple time trends and the general index formulations to the translog production function to capture time effects representing technological changes of unknown forms. In addition to the unknown forms, implementing the technology shifters model enabled this study to find possible known channels between economic growth and democracy. Empirical results based on a panel data of 144 countries observed for 1980-2014 show that democracy had a robust positive impact on economic growth. Credit guarantee is one of the most significant positive links between economic growth and democracy. The marginal effects of credit guarantee and foreign direct investment inflows are stronger in democratic countries than they are in non-democratic ones. In order to check the robustness of these results, a dynamic model constructed with a flexible adjustment speed and a target level of GDP is also tested. The results of this dynamic model also support the positive impacts of democracy on economic growth.




Democracy and Its Alternatives


Book Description

The collapse of Communism has created the opportunity for democracy to spread from Prague to the Baltic and Black Seas. But the alternatives—dictatorship or totalitarian rule—are more in keeping with the traditions of Central Europe. And for many post-Communist societies, democracy has come to be associated with inflation, unemployment, crime, and corruption. Is it still true, then, as Winston Churchill suggested a half-century ago, that people will accept democracy with all its faults—because it is better than anything else? To find out, political scientists Richard Rose, William Mishler, and Christian Haerpfer examine evidence from post-Communist societies in eastern Europe. Drawing on data from public opinion and exit polls, election results, and interviews, the authors present testable hypotheses regarding regime change, consolidation, and prospects for stabilization. The authors point out that the abrupt transition to democracy in post-Communist countries is normal; gradual evolution in the Anglo-American way is the exception to the rule. While most recent books on democratization focus on Latin America and, to some extent, Asia, the present volume offers a unique look at the process currently under way in nine eastern European countries: the Czech Republic, Hungary, Slovakia, Poland, Slovenia, Bulgaria, Romania, Belarus, and Ukraine. Despite the many problems these post-Communist societies are experiencing in making the transition to a more open and democratic polity, the authors conclude that a little democracy is better than no democracy at all.




Governance for Peace


Book Description

An evidence-based analysis of governance focusing on the institutional capacities and qualities that reduce the risk of armed conflict.