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Are all democracies equally good? The role of interactions between political environment and inequality for rule of law

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  • Sunde, Uwe
  • Cervellati, Matteo
  • Fortunato, Piergiuseppe

Abstract

Using cross-country data, we find evidence for a significant interaction effect between democracy and equality in determining the quality of growth-promoting institutions like rule of law. Democracy is associated with better rule of law when inequality is lower.

Suggested Citation

  • Sunde, Uwe & Cervellati, Matteo & Fortunato, Piergiuseppe, 2008. "Are all democracies equally good? The role of interactions between political environment and inequality for rule of law," Economics Letters, Elsevier, vol. 99(3), pages 552-556, June.
    • Handle: RePEc:eee:ecolet:v:99:y:2008:i:3:p:552-556
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    More about this item

    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • P14 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Property Rights

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