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Democracy and Economic Development: a Fuzzy Classification Approach

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  • Ana Margarida Oliveira Brochado

    ()
    (Faculdade de Economia, Universidade do Porto)

  • Francisco Vitorino Martins

    ()
    (Faculdade de Economia, Universidade do Porto)

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    Abstract

    The aim of this work is to (1) analyse whether countries differ on political indicators (democracy, rule of law, government effectiveness and corruption) and (2) study whether countries with different political profiles are associated with different levels of economic, human development and gender-related development indicators. Using a fuzzy classification approach (fuzzy k-means algorithm), we propose a typology of 124 countries based on 10 political variables. Six segments are identified; these political groups implicate the access to different levels of economic and human development. In this study evidence of a positive but not perfect relationship between democracy and economic and human development is observed, thus presenting new insights for the understanding of the heterogeneity of behaviors relatively to political indicators.

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    Bibliographic Info

    Paper provided by Universidade do Porto, Faculdade de Economia do Porto in its series FEP Working Papers with number 180.

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    Length: 23 pages.
    Date of creation: Jul 2005
    Date of revision:
    Handle: RePEc:por:fepwps:180

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    Keywords: Democracy; Economic Development; Fuzzy k-means;

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    1. Barro, Robert J, 1996. " Democracy and Growth," Journal of Economic Growth, Springer, vol. 1(1), pages 1-27, March.
    2. Barro, R.J., 1989. "Economic Growth In A Cross Section Of Countries," RCER Working Papers 201, University of Rochester - Center for Economic Research (RCER).
    3. Todd Landman, 1999. "Economic Development and Democracy: the View from Latin America," Political Studies, Political Studies Association, vol. 47(4), pages 607-626, 09.
    4. Jian-Guang Shen, 2002. "Democracy and growth: An alternative empirical approach," Development and Comp Systems 0212002, EconWPA.
    5. Tavares, Jose & Wacziarg, Romain, 2001. "How democracy affects growth," European Economic Review, Elsevier, vol. 45(8), pages 1341-1378, August.
    6. Perotti, Roberto, 1996. " Growth, Income Distribution, and Democracy: What the Data Say," Journal of Economic Growth, Springer, vol. 1(2), pages 149-87, June.
    7. Shen, Jian-Guang, 2002. "Democracy and growth: An alternative empirical approach," BOFIT Discussion Papers 13/2002, Bank of Finland, Institute for Economies in Transition.
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