Do Good Institutions Lower the Benefit of Democratization?
AbstractRecent studies have reported positive associations between democratization and economic growth. They have also explored how these associations could differ across regions or income levels. However, might the effects of democratization upon growth also depend upon other factors such as institutions promoting law and order (or the lack thereof)? Using a panel specification, we employ a democratization-law and order interactive term to examine if the effects of democratization upon economic growth depend upon these other institutions. We find that the coefficient on the interaction term is negative. The positive effects of democratization diminish in countries where other institutions are strong. In fact, we find that democratization could even lower growth where the rule of law already prevails.
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 University of Cyprus Department of Economics in its series University of Cyprus Working Papers in Economics with number 05-2013.
Length: 46 pages
Date of creation: Mar 2013
Date of revision:
Contact details of provider:
Web page: http://www.econ.ucy.ac.cy
Democratization; Economic Growth; Institutions;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-03-30 (All new papers)
- NEP-CDM-2013-03-30 (Collective Decision-Making)
- NEP-FDG-2013-03-30 (Financial Development & Growth)
- NEP-SOC-2013-03-30 (Social Norms & Social Capital)
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.:
- Elias Papaioannou & Gregorios Siourounis, 2007.
"Democratization And Growth,"
CEDI Discussion Paper Series
07-13, Centre for Economic Development and Institutions(CEDI), Brunel University.
- Papaioannou, Elias & Siourounis, Gregorios, 2008.
"Economic and social factors driving the third wave of democratization,"
Journal of Comparative Economics,
Elsevier, vol. 36(3), pages 365-387, September.
- Papaioannou, Elias & Siourounis, Gregorios, 2008. "Economic and Social Factors Driving the Third Wave of Democratization," CEPR Discussion Papers 6986, C.E.P.R. Discussion Papers.
- Theo Eicher & Till Schreiber, 2006.
"Structural Policies and Growth: Time Series Evidence from a Natural Experiment,"
48, Department of Economics, College of William and Mary.
- Eicher, Theo S. & Schreiber, Till, 2010. "Structural policies and growth: Time series evidence from a natural experiment," Journal of Development Economics, Elsevier, vol. 91(1), pages 169-179, January.
- Acemoglu, Daron & Cantoni, Davide & Johnson, Simon & Robinson, James A, 2009.
"The Consequences of Radical Reform: The French Revolution,"
CEPR Discussion Papers
7245, C.E.P.R. Discussion Papers.
- Daron Acemoglu & Davide Cantoni & Simon Johnson & James A. Robinson, 2011. "The Consequences of Radical Reform: The French Revolution," American Economic Review, American Economic Association, vol. 101(7), pages 3286-3307, December.
- Daron Acemoglu & Davide Cantoni & Simon Johnson & James A. Robinson, 2009. "The Consequences of Radical Reform: The French Revolution," NBER Working Papers 14831, National Bureau of Economic Research, Inc.
- William R. Hauk & Romain Wacziarg, 2004.
"A Monte Carlo Study of Growth Regressions,"
NBER Technical Working Papers
0296, National Bureau of Economic Research, Inc.
- Bluedorn, John C., 2001. "Can democracy help? Growth and ethnic divisions," Economics Letters, Elsevier, vol. 70(1), pages 121-126, January.
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.