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Should the Modernization Hypothesis Survive Acemoglu, Johnson, Robinson, and Yared? Some More Evidence

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  • Hugo J. Faria
  • Hugo M. Montesinos-Yufa
  • Daniel R. Morales
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    Abstract

    An important dimension of the “modernization hypothesis” is the claim that there is a long-run positive relation between socio-economic development and political democracy. This research strand of the modernization hypothesis, however, has been challenged in a series of papers by Daron Acemoglu, Simon Johnson, James Robinson, and Pierre Yared. Employing econometric specifications that condition on lagged democracy, income, education, time effects, and a proxy for the level of capitalist institutions, and applying the System Generalized Method of Moments estimator to a sample that spans recent decades, we find, in congruence with the modernization hypothesis, that income and education predict democracy.

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    Bibliographic Info

    Article provided by Econ Journal Watch in its journal Econ Journal Watch.

    Volume (Year): 11 (2014)
    Issue (Month): 1 (January)
    Pages: 17-36

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    Handle: RePEc:ejw:journl:v:11:y:2014:i:1:p:17-36

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    Keywords: Modernization hypothesis; political development; capitalism; system GMM estimator;

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