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Does Democracy Increase Growth More in New Countries?

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  • Kevin Sylwester

Abstract

type="main" xml:id="ecpo12055-abs-0001"> Countries face governing challenges at their inception, albeit not of the same degree or type. Challenges such as creating governing structures and forming one nation from disparate groups can create uncertainty and so lower economic growth. Does democracy exacerbate or lessen such problems? This paper considers an empirical specification where the effect of democracy upon economic growth is allowed to vary over time. I find that democracy is more greatly associated with economic growth in newer countries. This suggests that democracy helps to mitigate governing challenges that can lower economic growth.

Suggested Citation

  • Kevin Sylwester, 2015. "Does Democracy Increase Growth More in New Countries?," Economics and Politics, Wiley Blackwell, vol. 27(2), pages 266-289, July.
  • Handle: RePEc:bla:ecopol:v:27:y:2015:i:2:p:266-289
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    File URL: http://hdl.handle.net/10.1111/ecpo.2015.27.issue-2
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    Cited by:

    1. Andrew Farrant & Vlad Tarko, 2019. "James M. Buchanan’s 1981 visit to Chile: Knightian democrat or defender of the ‘Devil’s fix’?," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 32(1), pages 1-20, March.

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