The effects of democracy on National GDP per Capita: an empirical investigation
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Date
2020
Authors
Haimoun, Nathir
University of Lethbridge. Faculty of Arts and Science
Journal Title
Journal ISSN
Volume Title
Publisher
Lethbridge, Alta. : University of Lethbridge, Department of Economics
Abstract
The growth democracy question has been a subject of fundamental debate for the last few decades. Political regimes seem have been evidently shaping the economic performance, by greatly affecting regulations, enhancing accountability and transparency mechanisms, promoting the well-being of the whole population, and achieving satisfactory performance for the upcoming elections. Hence, this thesis examines the role of democracy in economic growth, by examining its effects on national Gross Domestic Product per Capita (GDPC). It utilizes a novel dataset which includes several democracy variables, such as Representative Government, Fundamental Rights, Checks on Government, and Impartial Administration. We find that the impact of democracy on GDPC is positive and significant. These results come in contrast to lower democracy levels in many emerging markets with relatively high economic growth rates. Finally, the empirical evidence points out that well-established democratic institutions provide economic stability, and they have positive effects on GDPC.
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Keywords
Democracy , Democracy -- Economic aspects , Economic development , Economic development -- Political aspects , Gross domestic product , Gross domestic product -- Political aspects , economic growth , Gross Domestic Product per Capita , economic stability , political democracy , economic democracy , Dissertations, Academic