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On the determinants of democracy in the Arab World

Author

Listed:
  • Nouha Bougharriou
  • Walid Benayed
  • Foued Badr Gabsi

Abstract

In this paper, we re-examine the "modernization theory" according to which economic development promotes democracy. Results for a panel of 17 Arab countries over the period 1990-2013, reveal that income per capita has a positive and statically significant effect on democracy. Our findings remain robust even after the inclusion of other potential determinants of democracy. Interestingly, we show that education, corruption and trade openness foster the emergence of democracy. However, it seems that urbanization, resource rents and the rise of democracy in neighboring countries impede democratic changes in the region.

Suggested Citation

  • 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.
    • Handle: RePEc:rej:journl:v:18:y:2016:i:59:p:25-42
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    References listed on IDEAS

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    More about this item

    Keywords

    democracy; income per capita; dynamic panel; democracy; income per capita; dynamic panel; Arab World;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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