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Does democracy cause growth? A meta-analysis (of 2000 regressions)

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  • Colagrossi, Marco
  • Rossignoli, Domenico
  • Maggioni, Mario A.

Abstract

The relationship between democracy and economic growth has been widely debated in the social sciences with contrasting results. We apply a meta-analytical framework surveying 188 studies (2047 models) covering 36 years of research in the field. We also compare the effect of democracy on growth with the effect of human capital on growth in a sub-sample of 111 studies (875 models). Our findings suggest that democracy has a positive and direct effect on economic growth beyond the reach of publication bias, albeit weaker (about one third) of that of human capital. Further, the growth effect of democracy appears to be stronger in more recent papers not surveyed in Doucouliagos and Ulubaşoğlu (2008). Finally, we show that the heterogeneity in the reported results is mainly driven by spatial and temporal differences in the samples, indicating that the democracy and growth nexus is not homogeneous across world regions and decades.

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  • Colagrossi, Marco & Rossignoli, Domenico & Maggioni, Mario A., 2020. "Does democracy cause growth? A meta-analysis (of 2000 regressions)," European Journal of Political Economy, Elsevier, vol. 61(C).
    • Handle: RePEc:eee:poleco:v:61:y:2020:i:c:s0176268019300552
    DOI: 10.1016/j.ejpoleco.2019.101824
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    7. Park, Hyungmin, 2023. "Developmental Dictatorship and Middle Class-driven Democratisation," QAPEC Discussion Papers 20, Quantitative and Analytical Political Economy Research Centre.
    8. Brieger Stefan & Markwardt Gunther, 2020. "The Democracy–Economy-Nexus," Review of Economics, De Gruyter, vol. 71(2), pages 135-167, August.
    9. Askarov, Zohid & Doucouliagos, Hristos & Paldam, Martin & Stanley, T.D., 2022. "Rewarding good political behavior: US aid, democracy, and human rights," European Journal of Political Economy, Elsevier, vol. 71(C).
    10. Lars Pelke, 2023. "Reanalysing the link between democracy and economic development," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 26(4), pages 361-383, December.
    11. Hosein Mohammadi & Flavio Boccia & Amirhossein Tohidi, 2023. "The Relationship between Democracy and Economic Growth in the Path of Sustainable Development," Sustainability, MDPI, vol. 15(12), pages 1-12, June.
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    13. Betz, Timm & Pond, Amy, 2023. "Democratic institutions and regulatory privileges for government debt," European Journal of Political Economy, Elsevier, vol. 79(C).
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    16. Christoph Doerffel, 2021. "The Poverty Effect of Democratization: Disaggregating Democratic Institutions," Jena Economics Research Papers 2021-018, Friedrich-Schiller-University Jena.
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    More about this item

    Keywords

    Democracy; Economic growth; Human capital; Meta-analysis;
    All these keywords.

    JEL classification:

    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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