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A Sensitivity Analysis of the Impact of Democracy on Economic Growth

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  • de Haan, Jakob
  • Siermann, Clemens L J

Abstract

Often it is maintained that democracy is a luxury which comes at a price in terms of subsequent slower increases in national living standards. However, various recent cross-section studies on economic growth have found evidence that lack of civil and political liberties is negatively correlated with economic growth. Using various measures of democracy the robustness of previous research is examined. Both direct and indirect effects of lack of civil and political liberties are analysed. Our main conclusion is that the relationship between democracy and economic growth is not robust.

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Bibliographic Info

Article provided by Springer in its journal Empirical Economics.

Volume (Year): 20 (1995)
Issue (Month): 2 ()
Pages: 197-215

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Handle: RePEc:spr:empeco:v:20:y:1995:i:2:p:197-215

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Cited by:
  1. Schneider, Friedrich G., 2009. "Is a Federal European Constitution for an enlarged European Union necessary? Some preliminary suggestions using public choice analysis," Center for European, Governance and Economic Development Research Discussion Papers 83, University of Goettingen, Department of Economics.
  2. Schneider, Friedrich G., 2009. "Is a Federal European Constitution for an enlarged European Union necessary? Some preliminary suggestions using public choice analysis," Center for European, Governance and Economic Development Research Discussion Papers 83, University of Goettingen, Department of Economics.
  3. de Haan, Jakob & Sturm, Jan-Egbert, 2000. "On the relationship between economic freedom and economic growth," European Journal of Political Economy, Elsevier, vol. 16(2), pages 215-241, June.
  4. Ludovic Comeau, 2003. "Democracy and Growth: A Relationship Revisited," Eastern Economic Journal, Eastern Economic Association, vol. 29(1), pages 1-21, Winter.
  5. Adam, Antonis & Delis, Manthos D & Kammas, Pantelis, 2009. "Are democratic governments more efficient?," MPRA Paper 15843, University Library of Munich, Germany.
  6. Jac, Heckelman, 2009. "The connection between democratic freedoms and growth in transition economies," MPRA Paper 21533, University Library of Munich, Germany.
  7. Haan, Jakob de & Kooi, Willem J., 2000. "Does central bank independence really matter?: New evidence for developing countries using a new indicator," Journal of Banking & Finance, Elsevier, vol. 24(4), pages 643-664, April.
  8. Fabrizio Carmignani, 2001. "Theory and Evidence on the Political Economy of Growth," Working Papers 33, University of Milano-Bicocca, Department of Economics, revised Jan 2001.
  9. Hristos Doucouliagos & Mehmet Ulubasoglu, 2006. "Democracy and Economic Growth: A Meta-Analysis," Economics Series 2006_04, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  10. Ngobo, Paul Valentin & Fouda, Maurice, 2012. "Is ‘Good’ governance good for business? A cross-national analysis of firms in African countries," Journal of World Business, Elsevier, vol. 47(3), pages 435-449.

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