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Democracy and Economic Development: a Fuzzy Classification Approach

Author

Listed:
  • Ana Margarida Oliveira Brochado

    (Faculdade de Economia, Universidade do Porto)

  • Francisco Vitorino Martins

    (Faculdade de Economia, Universidade do Porto)

Abstract

The aim of this work is to (1) analyse whether countries differ on political indicators (democracy, rule of law, government effectiveness and corruption) and (2) study whether countries with different political profiles are associated with different levels of economic, human development and gender-related development indicators. Using a fuzzy classification approach (fuzzy k-means algorithm), we propose a typology of 124 countries based on 10 political variables. Six segments are identified; these political groups implicate the access to different levels of economic and human development. In this study evidence of a positive but not perfect relationship between democracy and economic and human development is observed, thus presenting new insights for the understanding of the heterogeneity of behaviors relatively to political indicators.

Suggested Citation

  • Ana Margarida Oliveira Brochado & Francisco Vitorino Martins, 2005. "Democracy and Economic Development: a Fuzzy Classification Approach," FEP Working Papers 180, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:180
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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