Linda Chor Wing Yung (Department of Economics, the Chinese University of Hong Kong) Sam Hak-Kan Tang () (Department of Economics, The University of Western Australia)
Abstract
We examine the direction of causality between growth and democratization for the high performing Asian economies using a new time-series technique called autoregressive distributive lag. We find that for all eight of such economies, the direction of causality runs consistently from democratization to growth and not the other way around. Rapid growth in the high performing economies appears to have little effect on democratization. We also find that the net effect of democratization on growth is not always positive. Against the widely-held view that growth enhances democratization, our evidence suggests that rapidly developing countries under authoritarian rule are unlikely to improve their democratic institutions.
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Paper provided by The University of Western Australia, Department of Economics in its series Economics Discussion / Working Papers with number
05-20.
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Find related papers by JEL classification: O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
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Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2004.
"Do Institutions Cause Growth?,"
Journal of Economic Growth,
Springer, vol. 9(3), pages 271-303, 09.
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Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer, 2004.
"Do Institutions Cause Growth?,"
NBER Working Papers
10568, National Bureau of Economic Research, Inc.
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