IDEAS home Printed from https://ideas.repec.org/a/acc/malfin/v33y2018i109p165-180.html

Democratization and Economic Growth in Emerging Market Economies

Author

Listed:
  • Naib Alakbarov

    (Uşak University)

  • Yılmaz Bayar

    (Uşak University)

Abstract

The globalization phenomenon has gained speed in various aspects especially since mid-1980s, this process in turn partially contributed to democratization of the many countries. This study researches the effect of democratization on economic growth in emerging markets over 2002-2015 period with panel cointegration test of Westerlund-Durbin-Hausman (2008) and panel causality test of Dumitrescu and Hurlin (2012). The results revealed a cointegrating relationship between economic growth and democratization, but the interaction between democratization and growth varies from country to country. However, no causality relationships were found between democratization and economic growth in the short run.

Suggested Citation

  • Naib Alakbarov & Yılmaz Bayar, 2018. "Democratization and Economic Growth in Emerging Market Economies," Journal of Finance Letters (Maliye ve Finans Yazıları), Maliye ve Finans Yazıları Yayıncılık Ltd. Şti., vol. 33(109), pages 165-180, April.
    • Handle: RePEc:acc:malfin:v:33:y:2018:i:109:p:165-180
    DOI: https://doi.org/10.33203/mfy.391698
    as

    Download full text from publisher

    File URL: https://dergipark.org.tr/tr/download/article-file/462865
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.33203/mfy.391698?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Tay-Cheng Ma & Lishu Ouyang, 2016. "Democracy And Growth: A Perspective From Democratic Experience," Economic Inquiry, Western Economic Association International, vol. 54(4), pages 1790-1804, October.
    2. Tavares, Jose & Wacziarg, Romain, 2001. "How democracy affects growth," European Economic Review, Elsevier, vol. 45(8), pages 1341-1378, August.
    3. M. Hashem Pesaran, 2021. "General diagnostic tests for cross-sectional dependence in panels," Empirical Economics, Springer, vol. 60(1), pages 13-50, January.
    4. Masaki, Takaaki & van de Walle, Nicolas, 2014. "The impact of democracy on economic growth in sub-Saharan Africa, 1982-2012," WIDER Working Paper Series 057, World Institute for Development Economic Research (UNU-WIDER).
    5. Robert J. Barro, 1998. "Determinants of Economic Growth: A Cross-Country Empirical Study," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262522543, December.
    6. Aisen, Ari & Veiga, Francisco José, 2013. "How does political instability affect economic growth?," European Journal of Political Economy, Elsevier, vol. 29(C), pages 151-167.
    7. Matthew A. Baum & David A. Lake, 2003. "The Political Economy of Growth: Democracy and Human Capital," American Journal of Political Science, John Wiley & Sons, vol. 47(2), pages 333-347, April.
    8. repec:bla:rdevec:v:6:y:2002:i:2:p:225-47 is not listed on IDEAS
    9. M. Hashem Pesaran & Aman Ullah & Takashi Yamagata, 2008. "A bias-adjusted LM test of error cross-section independence," Econometrics Journal, Royal Economic Society, vol. 11(1), pages 105-127, March.
    10. Pesaran, M. Hashem & Vanessa Smith, L. & Yamagata, Takashi, 2013. "Panel unit root tests in the presence of a multifactor error structure," Journal of Econometrics, Elsevier, vol. 175(2), pages 94-115.
    11. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    12. Takaaki Masaki & Nicolas van de Walle, 2014. "The Impact of Democracy on Economic Growth in Sub-Saharan Africa, 1982-2012," WIDER Working Paper Series wp-2014-057, World Institute for Development Economic Research (UNU-WIDER).
    13. Hashem Pesaran, M. & Yamagata, Takashi, 2008. "Testing slope homogeneity in large panels," Journal of Econometrics, Elsevier, vol. 142(1), pages 50-93, January.
    14. Krieckhaus, Jonathan, 2006. "Democracy and Economic Growth: How Regional Context Influences Regime Effects," British Journal of Political Science, Cambridge University Press, vol. 36(2), pages 317-340, April.
    15. Helliwell, John F., 1994. "Empirical Linkages Between Democracy and Economic Growth," British Journal of Political Science, Cambridge University Press, vol. 24(2), pages 225-248, April.
    16. Dawid Piątek & Katarzyna Szarzec & Michał Pilc, 2013. "Economic freedom, democracy and economic growth: a causal investigation in transition countries," Post-Communist Economies, Taylor & Francis Journals, vol. 25(3), pages 267-288, September.
    17. Lamia Arfaoui & Azza Ziadi & Sonia Manai, 2016. "The Relationship between Democracy and Economic Growth in Tunisia: An Application of Autoregressive Distributed Lag Model," International Journal of Social Science Research, Macrothink Institute, vol. 4(1), pages 137-150, March.
    18. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    19. Evgeni Peev & Dennis C. Mueller, 2012. "Democracy, Economic Freedom and Growth in Transition Economies," Kyklos, Wiley Blackwell, vol. 65(3), pages 371-407, August.
    20. T. S. Breusch & A. R. Pagan, 1980. "The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 239-253.
    21. Dario Maimone Ansaldo Patti & Pietro Navarra, 2009. "Globalization, democratization and economic growth," Applied Economics Letters, Taylor & Francis Journals, vol. 16(7), pages 731-734.
    22. Francisco L. Rivera-Batiz & Luis A. Rivera-Batiz, 2018. "Democracy, Governance, and Economic Growth: Theory and Evidence," World Scientific Book Chapters, in: Francisco L Rivera-Batiz & Luis A Rivera-Batiz (ed.), International Trade, Capital Flows and Economic Development, chapter 8, pages 215-248, World Scientific Publishing Co. Pte. Ltd..
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fabrice Nzepang & Saturnin Bertrand Nguenda Anya, 2024. "What Is the Interaction Between Separation of Democratic Powers and Structural Transformation in Sub-Saharan Africa?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 7702-7722, June.
    2. Nguenda Anya, Saturnin Bertrand & Nzepang, Fabrice, 2022. "The role of the separation of democratic powers on structural transformation in Sub-Saharan Africa," Economic Systems, Elsevier, vol. 46(4).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Asiye Tutuncu & Yasar Bayraktar, 2024. "The effect of democracy and corruption paradox on economic growth: MINT countries," Economic Change and Restructuring, Springer, vol. 57(4), pages 1-25, August.
    2. Asiye TÜTÜNCÜ, 2020. "The Effect of Democracy on Economic Growth in Developing Countries," Sosyoekonomi Journal, Sosyoekonomi Society, issue 28(44).
    3. Aytun, Cengiz & Erdogan, Sinan & Pata, Ugur Korkut & Cengiz, Orhan, 2024. "Associating environmental quality, human capital, financial development and technological innovation in 19 middle-income countries: A disaggregated ecological footprint approach," Technology in Society, Elsevier, vol. 76(C).
    4. Chi, Meiqing & Muhammad, Sulaman & Khan, Zeeshan & Ali, Shahid & Li, Rita Yi Man, 2021. "Is centralization killing innovation? The success story of technological innovation in fiscally decentralized countries," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    5. Hossain, Mohammad Razib & Rao, Amar & Sharma, Gagan Deep & Dev, Dhairya & Kharbanda, Aeshna, 2024. "Empowering energy transition: Green innovation, digital finance, and the path to sustainable prosperity through green finance initiatives," Energy Economics, Elsevier, vol. 136(C).
    6. Muhammad Azam, 2022. "Governance and Economic Growth: Evidence from 14 Latin America and Caribbean Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(2), pages 1470-1495, June.
    7. John A Doces, 2020. "Democracy, consumption, and growth in sub-Saharan Africa," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 23(1), pages 28-48, March.
    8. Tsangyao Chang & Chien-Chiang Lee & Hsiao-Ping Chu, 2015. "Revisiting the Defense-Growth nexus in European countries," Defence and Peace Economics, Taylor & Francis Journals, vol. 26(3), pages 341-356, June.
    9. Hussein Moghaddam & Robert M. Kunst, 2023. "The Role of Natural Gas in Mitigating Greenhouse Gas Emissions: The Environmental Kuznets Curve Hypothesis for Major Gas-Producing Countries," Sustainability, MDPI, vol. 15(5), pages 1-20, February.
    10. Yilmaz Bayar & Rita Remeikienė & Gamze Sart, 2024. "ICT Penetration and Human Development: Empirical Evidence from the EU Transition Economies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 2422-2438, March.
    11. Kizito Uyi Ehigiamusoe & Hooi Hooi Lean & Chien-Chiang Lee, 2019. "Moderating effect of inflation on the finance–growth nexus: insights from West African countries," Empirical Economics, Springer, vol. 57(2), pages 399-422, August.
    12. Mariam Camarero & Sergi Moliner & Cecilio Tamarit, 2025. "Which are the long-run determinants of US outward FDI? Evidence using large long-memory panels," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 34(2), pages 259-290, February.
    13. Sisay Demissew Beyene & Mohammed Seid Ali & Belayneh Taye & Yihenew Wubu Endalew, 2024. "Questioning the democracy–growth debate in countries of the East African region: a political economy perspective," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 26(3), pages 1059-1081, December.
    14. Rao, Amar & Kumar, Satish & Karim, Sitara, 2024. "Accelerating renewables: Unveiling the role of green energy markets," Applied Energy, Elsevier, vol. 366(C).
    15. Afef Bouattour & Maha Kalai & Kamel Helali, 2024. "The non-linear relationship between ESG performance and bank stability in the digital era: new evidence from a regime-switching approach," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-17, December.
    16. Yilmaz BAYAR, & Naib ALAKBAROV, 2016. "CORRUPTION AND FOREIGN DIRECT INVESTMENT INFLOWS IN EMERGING MARKET ECONOMIES Usak University, Department of Economics, Usak, Turkey," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 5(2), pages 1-47, July.
    17. Haider Mahmood & Ateeq ur Rehman Irshad & Muhammad Tanveer, 2024. "Do innovation and renewable energy transition play their role in environmental sustainability in Western Europe?," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-9, December.
    18. Yilmaz Bayar & Marius Dan Gavriletea, 2018. "Foreign Direct Investment Inflows and Financial Development in Central and Eastern European Union Countries: A Panel Cointegration and Causality," IJFS, MDPI, vol. 6(2), pages 1-13, May.
    19. Shreya Pal, 2024. "The International Capital Flows and Domestic Savings–domestic Investment Nexus: A Comparative Evidence Between Heterogeneous Developing Regions," South Asian Journal of Macroeconomics and Public Finance, , vol. 13(2), pages 169-212, December.
    20. Mouhamadou Lamine DIAL, 2022. "Les effets de l’urbanisation et de l’industrialisation sur l’intensité énergétique dans la CEDEAO," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 56, pages 41-59.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:acc:malfin:v:33:y:2018:i:109:p:165-180. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Süleyman Kale (email available below). General contact details of provider: https://dergipark.org.tr/en/pub/mfy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.