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Democracy and Development: The Devil in the Details

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Torsten Persson
Guido Tabellini

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Abstract

Does democrazy promote economic development? Reviews recent attempts to addresses this question that exploited within-country variation. It shows that the answer is largely postive, but also depends on the details of democratic reforms. First, the sequence of economic vs political reforms matters: countries liberalizing their economy before extending political rights do better. Second, different forms of democratic government lead to different economic policies, and this might explain why presidential democracy leads to faster growth than parliamentary democracy. Third, it is important to distinguish between expected and actual political reforms. Taking expectations of regime change into account helps identify a stronger growth effect of democracy.

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Paper provided by IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University in its series Working Papers with number 302.

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Date of creation: 2006
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Handle: RePEc:igi:igierp:302

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Dani Rodrik & Romain Wacziarg, 2005. "Do Democratic Transitions Produce Bad Economic Outcomes?," American Economic Review, American Economic Association, vol. 95(2), pages 50-55, May. [Downloadable!]
  2. Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1995-1), pages 1-118. [Downloadable!]
  3. Persson, Torsten, 2005. "Forms of Democracy, Policy and Economic Development," CEPR Discussion Papers 4938, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  4. Torsten Persson & Guido Tabellini, 2004. "Constitutional Rules and Fiscal Policy Outcomes," American Economic Review, American Economic Association, vol. 94(1), pages 25-45, March. [Downloadable!]
  5. Giavazzi, Francesco & Tabellini, Guido, 2005. "Economic and political liberalizations," Journal of Monetary Economics, Elsevier, vol. 52(7), pages 1297-1330, October. [Downloadable!] (restricted)
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  6. Torsten Persson & Guido Tabellini, 2006. "Democratic capital: The nexus of political and economic change," Working Papers 308, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University. [Downloadable!]
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  7. Elias Papaioannou & Gregorios Siourounis, 2007. "Democratization And Growth," CEDI Discussion Paper Series 07-13, Centre for Economic Development and Institutions(CEDI), Brunel University. [Downloadable!]
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  8. Jeffrey Sachs & Andrew Warner, 1995. "Economic Reform and the Progress of Global Integration," Harvard Institute of Economic Research Working Papers 1733, Harvard - Institute of Economic Research.
  9. Torsten Persson & Guido Tabellini, 2005. "The Economic Effects of Constitutions," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262661926.
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Persson, Torsten & Tabellini, Guido, 2007. "The Growth Effect of Democracy: Is It Heterogeneous and How Can It Be Estimated?," CEPR Discussion Papers 6339, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  2. Egorov, Georgy & Guriev, Sergei & Sonin, Konstantin, 2006. "Media Freedom, Bureaucratic Incentives and the Resource Curse," CEPR Discussion Papers 5748, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  3. Masayuki Kudamatsu, 2007. "Has Democratization Reduced Infant Mortality in Sub-Saharan Africa? Evidence from Micro Data," ISER Discussion Paper 0685, Institute of Social and Economic Research, Osaka University. [Downloadable!]
  4. Pauline Grosjean & Claudia Senik, 2007. "Should Market Liberalization Precede Democracy? Causal Relations between Political Preferences and Development," IZA Discussion Papers 2889, Institute for the Study of Labor (IZA). [Downloadable!]
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  5. Olper, Alessandro & Falkowski, Jan & Swinnen, Jo, 2009. "Democracy and Agricultural Protection: Parametric and Semi-parametric Matching Estimates," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49313, Agricultural and Applied Economics Association. [Downloadable!]
  6. Graziella Bertocchi & Chiara Strozzi, 2006. "The Age of Mass Migration: Economic and Institutional Determinants," IZA Discussion Papers 2499, Institute for the Study of Labor (IZA). [Downloadable!]
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  7. Sambit Bhattacharyya, 2008. "Unbundled Institutions, Human Capital and Growth," Departmental Working Papers 2008-14, Australian National University, Economics RSPAS. [Downloadable!]
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  8. Graziella Bertocchi & Chiara Strozzi, 2008. "International Migration and the Role of Institutions," Center for Economic Research (RECent) 012, University of Modena and Reggio E., Dept. of Economics. [Downloadable!]
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  9. Pereira, Carlos & Kuhl Teles, Vladimir, 2009. "Political Institutions As Substitute For Democracy: A Political Economy Analysis Of Economic Growth," Textos para discussão 196, Escola de Economia de São Paulo, Getulio Vargas Foundation (Brazil). [Downloadable!]
  10. Nadia Fiorino & Roberto Ricciuti, 2007. "Determinants of Direct Democracy," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  11. Stephen Coate & Brian Knight, 2009. "Government Form and Public Spending: Theory and Evidence from U.S. Municipalities," NBER Working Papers 14857, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  12. Jessica Henson Decker & Jamus Jerome Lim, 2008. "What fundamentally drives growth? Revisiting the institutions and economic performance debate," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(5), pages 698-725. [Downloadable!]
  13. Brückner, Markus & Ciccone, Antonio, 2008. "Rain and the Democratic Window of Opportunity," CEPR Discussion Papers 6691, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  14. Vladimir Kühl Teles & Carlos Pereira, 2008. "Political institutions matter for incipient but not for consolidated democracies: a political economy analysis of economic growth," Anais do XXXVI Encontro Nacional de Economia [Proceedings of the 36th Brazilian Economics Meeting] 200807211539390, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. [Downloadable!]
  15. Aidt, T.S. & Eterovic, D.S., 2007. "Give and Take: Political Competition, Participation and Public Finance in 20th Century Latin America," Cambridge Working Papers in Economics 0714, Faculty of Economics, University of Cambridge. [Downloadable!]
  16. Olper, Alessandro & Raimondi, Valentina, 2009. "Constitutional Rules and Agricultural Policy Outcomes," Agricultural Distortions Working Paper 50304, World Bank. [Downloadable!]
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