Democracy, Technology, and Growth
AbstractWe explore the question of how political institutions and particularly democracy affect economic growth. Although empirical evidence of a positive effect of democracy on economic performance in the aggregate is weak, we provide evidence that democracy influences productivity growth in different sectors differently and that this differential effect may be one of the reasons of the ambiguity of the aggregate results. We provide evidence that political rights are conducive to growth in more advanced sectors of an economy, while they do not matter or have a negative effect on growth in sectors far away from the technological frontier. One channel of explanation goes through the beneficial effects of democracy and political rights on the freedom of entry in markets. Overall, democracies tend to have much lower entry barriers than autocracies, because political accountability reduces the protection of vested interests, and entry in turn is known to be generally more growth-enhancing in sectors that are closer to the technological frontier. We present empirical evidence that supports this entry explanation.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 13180.
Date of creation: Jun 2007
Date of revision:
Note: POL EFG
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Find related papers by JEL classification:
- H7 - Public Economics - - State and Local Government; Intergovernmental Relations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-18 (All new papers)
- NEP-CDM-2007-06-18 (Collective Decision-Making)
- NEP-DEV-2007-06-18 (Development)
- NEP-LTV-2007-06-18 (Unemployment, Inequality & Poverty)
- NEP-PBE-2007-06-18 (Public Economics)
- NEP-POL-2007-06-18 (Positive Political Economics)
- NEP-SOC-2007-06-18 (Social Norms & Social Capital)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Akerman, Anders & Larsson, Anna & Naghavi, Alireza, 2011.
"Autocracies and Development in a Global Economy: A Tale of Two Elites,"
Research Papers in Economics
2011:24, Stockholm University, Department of Economics.
- Anders Akerman & Anna Larsson & Alireza Naghavi, 2011. "Autocracies and Development in a Global Economy: A Tale of Two Elites," Center for Economic Research (RECent) 065, University of Modena and Reggio E., Dept. of Economics.
- Anders Akerman & Anna Larsson & Alireza Naghavi, 2011. "Autocracies and Development in a Global Economy: A Tale of Two Elites," DEGIT Conference Papers c016_041, DEGIT, Dynamics, Economic Growth, and International Trade.
- Anders Akerman & Anna Larsson & Alireza Naghavi, 2011. "Autocracies and Development in a Global Economy: A Tale of Two Elites," Working Papers 2011.65, Fondazione Eni Enrico Mattei.
- A. Akerman & A. Larsson & A. Naghavi, 2011. "Autocracies and Development in a Global Economy: A Tale of Two Elites," Working Papers wp775, Dipartimento Scienze Economiche, Universita' di Bologna.
- Fedderke, Johannes & Klitgaard, Robert, 2013. "How Much Do Rights Matter?," World Development, Elsevier, vol. 51(C), pages 187-206.
- Sara Corujo & Marta Simões, 2012. "Democracy and Growth: Evidence for Portugal (1960–2001)," Transition Studies Review, Springer, vol. 18(3), pages 512-528, March.
- Hellmanzik, Christiane, 2013. "Democracy and economic outcomes: Evidence from the superstars of modern art," European Journal of Political Economy, Elsevier, vol. 30(C), pages 58-69.
- Andrey A. GNIDCHENKO, 2011.
"Defragmentation Of Economic Growth With A Focus On Diversification: Evidence From Russian Economy,"
Theoretical and Practical Research in Economic Fields,
ASERS Publishing, vol. 0(1), pages 45-85, June.
- Gnidchenko, Andrey, 2010. "Defragmentation of Economic Growth with a Focus on Diversification: Evidence from Russian Economy," MPRA Paper 27113, University Library of Munich, Germany.
- Aghion, Philippe & Akcigit, Ufuk & Howitt, Peter, 2014. "What Do We Learn From Schumpeterian Growth Theory?," Handbook of Economic Growth, in: Handbook of Economic Growth, edition 1, volume 2, chapter 0, pages 515-563 Elsevier.
- Seim, Anna Larsson & Parente, Stephen L., 2013. "Democracy as a middle ground: A unified theory of development and political regimes," European Economic Review, Elsevier, vol. 64(C), pages 35-56.
- Joseph P. Hughes & Loretta J. Mester, 2008. "Efficiency in banking: theory, practice, and evidence," Working Papers 08-1, Federal Reserve Bank of Philadelphia.
- Daron Acemoglu & Georgy Egorov & Konstantin Sonin, 2009.
"Political Selection and Persistence of Bad Governments,"
NBER Working Papers
15230, National Bureau of Economic Research, Inc.
- Daron Acemoglu & Georgy Egorov & Konstantin Sonin, 2010. "Political Selection and Persistence of Bad Governments," The Quarterly Journal of Economics, MIT Press, vol. 125(4), pages 1511-1575, November.
- Madeeha Gohar Qureshi & Eatzaz Ahmed, 2012. "The Inter-linkages between Democracy and Per Capita GDP Growth: A Cross Country Analysis," PIDE-Working Papers 2012:85, Pakistan Institute of Development Economics.
- David Cuberes & Michał Jerzmanowski, 2009.
"Democracy, Diversification and Growth Reversals,"
Royal Economic Society, vol. 119(540), pages 1270-1302, October.
- Che, Jiahua & Chung, Kim-Sau & Qiao, Xue, 2013. "The good, the bad, and the civil society," Journal of Public Economics, Elsevier, vol. 106(C), pages 68-76.
- Olper, Alessandro & Raimondi, Valentina, 2009.
"Constitutional Rules and Agricultural Policy Outcomes,"
Agricultural Distortions Working Paper
50304, World Bank.
- Olper, Alessandro & Raimondi, Valentina, 2008. "Consitutional Rules and Agricultural Policy Outcomes," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43870, European Association of Agricultural Economists.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.