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Democracy and prosperity in two decades of transition

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  • Apolte, Thomas

Abstract

This paper revisits the relation between democracy, liberalization, and prosperity in transition countries, using a panel of 25 countries over 19 years. Earlier investigations found political and economic liberalization to be positively correlated whereas the relation between political liberalization and prosperity remained unclear. In this paper, a hump-shaped relationship between political liberalization and growth is found, such that a rise in democracy levels promotes growth only under initially low democracy levels. Furthermore, economic and political liberalization turn out to be positively related, but with surprisingly small coefficients. --

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Bibliographic Info

Paper provided by Center of Applied Economic Research Münster (CAWM), University of Münster in its series CAWM Discussion Papers with number 26.

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Date of creation: 2010
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Handle: RePEc:zbw:cawmdp:26

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Keywords: Transition Economics; Public Choice; Democracy; Growth;

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  2. Timothy Besley & Masayuki Kudamatsu, 2007. "Making Autocracy Work," STICERD - Development Economics Papers - From 2008 this series has been superseded by Economic Organisation and Public Policy Discussion Papers 48, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
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Cited by:
  1. Jan Babecky & Tomas Havranek, 2013. "Structural Reforms and Growth in Transition: A Meta-Analysis," William Davidson Institute Working Papers Series wp1057, William Davidson Institute at the University of Michigan.
  2. Jan Babecky & Tomas Havranek, 2014. "Structural reforms and growth in transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(1), pages 13-42, 01.
  3. Jan Babecky & Tomas Havranek, 2013. "Structural Reforms and Economic Growth: A Meta-Analysis," Working Papers 2013/08, Czech National Bank, Research Department.
  4. Tridico, Pasquale, 2013. "The stage of development among former communist economies: Social capital, the middle class and democracy," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 44(C), pages 47-58.
  5. Jürgen Jerger, 2012. "Zur Akzeptanz politischer und marktwirtschaftlicher Reformen in Osteuropa: Empirische Befunde und Erklärungsansätze," Working Papers 315, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies).

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