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New Evidence on the Relationship between Democracy and Economic Growth

Author

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  • de Haan, Jakob
  • Siermann, Clemens L J

Abstract

It is often maintained that democracy is a luxury which comes at a price in terms of subsequent slower increases in national living standards. However, various recent cross-section studies on economic growth have found evidence that lack of civil and political liberties is negatively correlated with economic growth. Using a new measure of democracy, which is based upon the number of years that a country can be regarded as a democracy, the robustness of this relationship is examined. Both direct and indirect effects of lack of democratic liberties are analysed. Our main conclusion is that the relationship between democracy and economic growth is not robust. Copyright 1996 by Kluwer Academic Publishers

Suggested Citation

  • de Haan, Jakob & Siermann, Clemens L J, 1996. "New Evidence on the Relationship between Democracy and Economic Growth," Public Choice, Springer, vol. 86(1-2), pages 175-198, January.
  • Handle: RePEc:kap:pubcho:v:86:y:1996:i:1-2:p:175-98
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    Citations

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    Cited by:

    1. Toke S. Aidt & Martin Gassebner, 2010. "Do Autocratic States Trade Less?," World Bank Economic Review, World Bank Group, vol. 24(1), pages 38-76, January.
    2. repec:got:cegedp:83 is not listed on IDEAS
    3. repec:eee:jcecon:v:45:y:2017:i:2:p:325-343 is not listed on IDEAS
    4. Panu Pelkonen, 2012. "Length of compulsory education and voter turnout—evidence from a staged reform," Public Choice, Springer, vol. 150(1), pages 51-75, January.
    5. Haddad, Lawrence & Oshaug, Arne, 1998. "How does the human rights perspective help to shape the food and nutrition policy research agenda?," Food Policy, Elsevier, vol. 23(5), pages 329-345, October.
    6. Schneider, Friedrich G., 2009. "Is a Federal European Constitution for an enlarged European Union necessary? Some preliminary suggestions using public choice analysis," Center for European, Governance and Economic Development Research Discussion Papers 83, University of Goettingen, Department of Economics.
    7. Pitlik, Hans & Wirth, Steffen, 2003. "Do crises promote the extent of economic liberalization?: an empirical test," European Journal of Political Economy, Elsevier, vol. 19(3), pages 565-581, September.
    8. de Haan, Jakob & Sturm, Jan-Egbert, 2003. "Does more democracy lead to greater economic freedom? New evidence for developing countries," European Journal of Political Economy, Elsevier, vol. 19(3), pages 547-563, September.
    9. Johannes Fedderke & Julia Garlick, 2012. "Measuring Institutions: Indicators of Political and Property Rights in Malawi," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 106(3), pages 491-521, May.
    10. Lundström, Susanna, 2002. "Decomposed Effects of Democracy on Economic Freedom," Working Papers in Economics 74, University of Gothenburg, Department of Economics.
    11. Kangoye, Thierry, 2011. "Does Foreign Aid Promote Democracy?," WIDER Working Paper Series 064, World Institute for Development Economic Research (UNU-WIDER).
    12. de Haan, Jakob & Sturm, Jan-Egbert, 2000. "On the relationship between economic freedom and economic growth," European Journal of Political Economy, Elsevier, vol. 16(2), pages 215-241, June.
    13. Haan, Jakob de & Kooi, Willem J., 2000. "Does central bank independence really matter?: New evidence for developing countries using a new indicator," Journal of Banking & Finance, Elsevier, vol. 24(4), pages 643-664, April.
    14. Jakob De Haan & Susanna Lundström & Jan-Egbert Sturm, 2006. "Market-oriented institutions and policies and economic growth: A critical survey," Journal of Economic Surveys, Wiley Blackwell, vol. 20(2), pages 157-191, April.
    15. Mwangi S. Kimenyi, 2007. "Institutional Infrastructure to Support 'Super Growth' in Kenya: Governance Thresholds, Reversion Rates and Economic Development," Working papers 2007-32, University of Connecticut, Department of Economics.
    16. Berggren, Niclas, 2003. "The Benefits of Economic Freedom: A Survey," Ratio Working Papers 4, The Ratio Institute.
    17. Fasoranti, Modupe Mary & Alimi, Rasaq Santos, 2017. "Government Size, Political Institutions and Output Growth in Nigeria," MPRA Paper 80562, University Library of Munich, Germany.
    18. Mark McGillivray & Simon Feeny & Niels Hermes & Robert Lensink, 2006. "Controversies over the impact of development aid: it works; it doesn't; it can, but that depends …," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(7), pages 1031-1050.
    19. McGillivray, Mark & Feeny, Simon & Hermes, Niels & Lensink, Robert, 2005. "It Works; It Doesn't; It Can, But That Depends?: 50 Years of Controversy over the Macroeconomic Impact of Development Aid," WIDER Working Paper Series 054, World Institute for Development Economic Research (UNU-WIDER).
    20. Mwangi S. Kimenyi, 2005. "Economic Rights, Human Development Effort and Institutions," Working papers 2005-40, University of Connecticut, Department of Economics.
    21. Andrew Williams & Abu Siddique, 2008. "The use (and abuse) of governance indicators in economics: a review," Economics of Governance, Springer, vol. 9(2), pages 131-175, May.
    22. repec:eee:respol:v:46:y:2017:i:7:p:1272-1283 is not listed on IDEAS
    23. Geoffrey M. Hodgson, 2006. "Instituciones, recesiones y recuperación en las economías en transición," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 8(15), pages 43-68, July-Dece.

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