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The Democracy–Economy-Nexus

Author

Listed:
  • Brieger Stefan

    (Technische Universität Dresden, Dresden, Germany)

  • Markwardt Gunther

    (Brandenburg University of Technology & CESifo, Cottbus, Germany)

Abstract

Despite a sizeable theoretical and empirical literature, no firm conclusions have been drawn regarding the democracy–economy-nexus. This paper aims to assess the twosided relationship between democracy and economic development based on the current state of research. Literature will be used to examine whether and how democracy affects economic development, as well as the reverse question. Does economic development influence the form of government of a society, i.e. can it promote or hinder a transition from autocracy to democracy? In addition to approaches that postulate a positive relationship, we will also present perspectives that either negatively interpret a correlation between the two variables or completely negate it.

Suggested Citation

  • Brieger Stefan & Markwardt Gunther, 2020. "The Democracy–Economy-Nexus," Review of Economics, De Gruyter, vol. 71(2), pages 135-167, August.
  • Handle: RePEc:lus:reveco:v:71:y:2020:i:2:p:135-167:n:3
    DOI: 10.1515/roe-2020-0031
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    References listed on IDEAS

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    More about this item

    Keywords

    democracy; economic development; modernisation theory; survey;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism

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