TY - JOUR
T1 - Does democracy drive income in the world, 1500-2000?
AU - Madsen, Jakob Brochner
AU - Raschky, Paul
AU - Skali, Ahmed
PY - 2015
Y1 - 2015
N2 - Using data for political regimes, income and human capital for a sample of 141 countries over the periods 1820-2000 and 1500-2000, this research examines the income and growth effects of democracy when human capital, among other key variables, is controlled for. Linguistic distance-weighted foreign democracy is used as an instrument for domestic democracy. Democracy is found to be a significant determinant of income and growth and the result is robust to various estimation methods and covariates. We find that a one-standard deviation increase in democracy is associated with a 44-98 increase in per capita income.
AB - Using data for political regimes, income and human capital for a sample of 141 countries over the periods 1820-2000 and 1500-2000, this research examines the income and growth effects of democracy when human capital, among other key variables, is controlled for. Linguistic distance-weighted foreign democracy is used as an instrument for domestic democracy. Democracy is found to be a significant determinant of income and growth and the result is robust to various estimation methods and covariates. We find that a one-standard deviation increase in democracy is associated with a 44-98 increase in per capita income.
UR - http://dx.doi.org/10.1016/j.euroecorev.2015.05.005
U2 - 10.1016/j.euroecorev.2015.05.005
DO - 10.1016/j.euroecorev.2015.05.005
M3 - Article
VL - 78
SP - 175
EP - 195
JO - European Economic Review
JF - European Economic Review
SN - 0014-2921
ER -