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Democracy and economic growth: the role of intelligence in cross-country regressions

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  • Salahodjaev, Raufhon

Abstract

Empirical literature has long conjectured that institutional arrangements, proxied by democracy, social capital and intelligence, are relevant determinants in cross-country differences in economic performance. Related literature, however, predominantly documents that democracy has either a negative or not significant impact on economic growth, while intelligence is assumed to have strong and direct effect on economic performance. We propose that that the effect of democratization is mediated by the degree of the approval to such policies, and that intelligence may alleviate or diminish the negative effect of weak institutions on economic growth. We empirically, investigate the interactive effect of democracy and intelligence on economic growth, using data from 93 nations, over the period 1970-2013. The results show that the relationship link between democracy and the real GDP growth varies with a nation’s level of cognitive abilities. The results remain robust to various estimation techniques, control variables and time periods.

Suggested Citation

  • Salahodjaev, Raufhon, 2015. "Democracy and economic growth: the role of intelligence in cross-country regressions," MPRA Paper 65716, University Library of Munich, Germany, revised 26 Apr 2015.
  • Handle: RePEc:pra:mprapa:65716
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    References listed on IDEAS

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    Cited by:

    1. Odilova, Shoirahon, 2016. "Patent protection, intelligence and economic growth: a cross-country empirical investigation," MPRA Paper 70842, University Library of Munich, Germany.
    2. Azam, Sardor, 2016. "Does intelligence explain why nations differ in online political participation?," MPRA Paper 72731, University Library of Munich, Germany.
    3. Burhan, Nik Ahmad Sufian & Che Razak, Razli & Rosli, Muhamad Ridhwan & Selamat, Muhamad Rosli, 2017. "The Bell Curve of Intelligence, Economic Growth and Technological Achievement: How Robust is the Cross-Country Evidence?," MPRA Paper 77469, University Library of Munich, Germany.
    4. Odilova, Shoirahon, 2016. "Does stronger protection of intellectual property have effect on trade?," MPRA Paper 75600, University Library of Munich, Germany.
    5. Odilova, Shoirahon & Xiaomin, Gu, 2016. "IPR protection, intelligence and economic growth: a cross-country empirical investigation," MPRA Paper 71226, University Library of Munich, Germany.
    6. Salahodjaev, Raufhon & Odilova, Shoirahon & Andrés, Antonio R., 2016. "Intelligence and Crime: A novel evidence for software piracy," MPRA Paper 71569, University Library of Munich, Germany.
    7. Burhan, Nik Ahmad Sufian & Che Razak, Razli & Salleh, Fauzilah & Labastida Tovar, María Elena, 2017. "Intelligence and the Ease of Doing Business: Does Intellectual Class Facilitate Leadership and Entrepreneurship?," MPRA Paper 77503, University Library of Munich, Germany.
    8. Salahodjaev, Raufhon, 2016. "Intelligence and deforestation: International data," Forest Policy and Economics, Elsevier, vol. 63(C), pages 20-27.
    9. Lien, Nguyen Phuong, 2015. "The impact of institutional quality on tax revenue in developing countries," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 5(10), pages 181-195, October.
    10. Salahodjaev, Raufhon, 2016. "Intelligence and defense spending: a cross-country evidence," MPRA Paper 70252, University Library of Munich, Germany.
    11. Odilova, Shoirahon, 2017. "Cognitive abilities, institutions and software piracy: a note," MPRA Paper 76861, University Library of Munich, Germany.
    12. repec:eee:respol:v:46:y:2017:i:7:p:1272-1283 is not listed on IDEAS
    13. Salahodjaev, Raufhon, 2015. "IQ and the wellbeing of nations," MPRA Paper 66356, University Library of Munich, Germany.
    14. Solieva, Mastura, 2017. "Cognitive abilities and sustainable development: a global analysis," MPRA Paper 77055, University Library of Munich, Germany.
    15. Salahodjaev, Raufhon & Azam, Sardor, 2015. "Intelligence and gender (in)equality: empirical evidence from developing countries," MPRA Paper 66295, University Library of Munich, Germany.

    More about this item

    Keywords

    intelligence; democracy; economic growth; IQ; cross-county;

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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