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Democracy and Economic Growth

A Meta‐Analysis

Bibliographic Data

ID6232576
AuthorsHristos Doucouliagos (0000-0001-5269-3556, Deakin University), Mehmet Ali Ulubaşoğlu, Mehmet Ulubaşoğlu (0000-0003-3055-5755, Deakin University)
Year2008
Volume52
Issue1
Pages61-83
Publication date2008-01-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueAmerican Journal of Political Science (JOURNAL)
Journal identifiersISSN: 0092-5853 • E-ISSN: 1540-5907
PublisherWiley (PUBLISHER • GB)
DOI10.1111/j.1540-5907.2007.00299.x
OpenAlexW1956940534
LanguageEN
Citations received147
References cited155

Despite a sizeable theoretical and empirical literature, no firm conclusions have been drawn regarding the impact of political democracy on economic growth. This article challenges the consensus of an inconclusive relationship through a quantitative assessment of the democracy‐growth literature. It applies meta‐regression analysis to the population of 483 estimates derived from 84 studies on democracy and growth. Using traditional meta‐analysis estimators, the bootstrap, and Fixed and Random Effects meta‐regression models, it derives several robust conclusions. Taking all the available published evidence together, it concludes that democracy does not have a direct impact on economic growth. However, democracy has robust, significant, and positive indirect effects through higher human capital, lower inflation, lower political instability, and higher levels of economic freedom. Democracies may also be associated with larger governments and less free international trade. There also appear to be country‐ and region‐specific democracy‐growth effects. Overall, democracy's net effect on the economy does not seem to be detrimental

Democracy · Development economics · Econometrics · Economic freedom · Economic growth · Economics · Estimator · Human capital · Inflation (cosmology · Market economy · Meta-analysis · Political instability · Political science · Politics · Regression analysis · Statistics · Corruption and Economic Development · Electoral Systems and Political Participation · Fiscal Policy and Economic Growth · Law · Mathematics

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Unique citing works147
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