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A Sensitivity Analysis of the Impact of Democracy on Economic Growth

Author

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  • de Haan, Jakob
  • Siermann, Clemens L J

Abstract

Often it is 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 various measures of democracy the robustness of previous research is examined. Both direct and indirect effects of lack of civil and political liberties are analysed. Our main conclusion is that the relationship between democracy and economic growth is not robust.

Suggested Citation

  • de Haan, Jakob & Siermann, Clemens L J, 1995. "A Sensitivity Analysis of the Impact of Democracy on Economic Growth," Empirical Economics, Springer, vol. 20(2), pages 197-215.
  • Handle: RePEc:spr:empeco:v:20:y:1995:i:2:p:197-215
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    Citations

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    Cited by:

    1. Adam, Antonis & Delis, Manthos D. & Kammas, Pantelis, 2011. "Are democratic governments more efficient?," European Journal of Political Economy, Elsevier, vol. 27(1), pages 75-86, March.
    2. 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.
    3. Jac C. Heckelman, 2010. "The Connection between Democratic Freedoms and Growth in Transition Economies," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 56(2), pages 121-146.
    4. Ngobo, Paul Valentin & Fouda, Maurice, 2012. "Is ‘Good’ governance good for business? A cross-national analysis of firms in African countries," Journal of World Business, Elsevier, vol. 47(3), pages 435-449.
    5. 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.
    6. Dutt, Pushan & Mobarak, Ahmed Mushfiq, 2016. "Democracy and policy stability," International Review of Economics & Finance, Elsevier, vol. 42(C), pages 499-517.
    7. repec:got:cegedp:83 is not listed on IDEAS
    8. Ludovic Comeau, 2003. "Democracy and Growth: A Relationship Revisited," Eastern Economic Journal, Eastern Economic Association, vol. 29(1), pages 1-21, Winter.
    9. repec:spr:soinre:v:133:y:2017:i:2:d:10.1007_s11205-016-1389-z is not listed on IDEAS
    10. Fabrizio Carmignani, 2001. "Theory and Evidence on the Political Economy of Growth," Working Papers 33, University of Milano-Bicocca, Department of Economics, revised Jan 2001.
    11. 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.

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