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An empirical investigation of the determinants of democracy: Trade, aid and the neighbor effect

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  • Csordás, Stefan
  • Ludwig, Markus

Abstract

Empirical investigation by dynamic panel data models of the determinants of democracy shows a strong positive neighbor effect. Foreign aid is stabilizing but not inducing democratic development, while there is no significant relationship to openness to trade and income.

Suggested Citation

  • Csordás, Stefan & Ludwig, Markus, 2011. "An empirical investigation of the determinants of democracy: Trade, aid and the neighbor effect," Economics Letters, Elsevier, vol. 110(3), pages 235-237, March.
    • Handle: RePEc:eee:ecolet:v:110:y:2011:i:3:p:235-237
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    References listed on IDEAS

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    Cited by:

    1. Hartwell, Christopher A., 2018. "The “Hierarchy of Institutions” reconsidered: Monetary policy and its effect on the rule of law in interwar Poland," Explorations in Economic History, Elsevier, vol. 68(C), pages 37-70.
    2. Zohid Askarov & Hristos Doucouliagos, 2013. "Does aid improve democracy and governance? A meta-regression analysis," Public Choice, Springer, vol. 157(3), pages 601-628, December.
    3. Armey, Laura E. & McNab, Robert M., 2012. "Democratization and civil war," MPRA Paper 42460, University Library of Munich, Germany.
    4. Nouha Bougharriou & Walid Benayed & Foued Badr Gabsi, 2016. "On the determinants of democracy in the Arab World," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 18(59), pages 25-42, March.
    5. Ivar Kolstad & Arne Wiig, 2014. "Diversification and democracy," CMI Working Papers 9, CMI (Chr. Michelsen Institute), Bergen, Norway.
    6. Bougharriou, Nouha & Benayed, Walid & Gabsi, Foued Badr, 2018. "The democracy and economic growth nexus: Do FDI and government spending matter? Evidence from the Arab world," Economics Discussion Papers 2018-17, Kiel Institute for the World Economy (IfW).
    7. Adam, Antonis & Karanatsis, Konstas, 2016. "Sovereign Defaults and Political Regime Transitions," MPRA Paper 69062, University Library of Munich, Germany.

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