Democracy Does Not Cause Growth: The Importance of Endogeneity Arguments

Arbeitspapier

This article challenges recent findings that democracy has sizable effects on economic growth. As extensive political science research indicates that economic turmoil is responsible for causing or facilitating many democratic transitions, the paper focuses on this endogeneity concern. Using a worldwide survey of 165 country-specific democracy experts conducted for this study, the paper separates democratic transitions into those occurring for reasons related to economic turmoil, here called endogenous, and those grounded in reasons more exogenous to economic growth. The behavior of economic growth following these more exogenous democratizations strongly indicates that democracy does not cause growth. Consequently, the common positive association between democracy and economic growth is driven by endogenous democratization episodes (i.e., due to faulty identification).

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IDB Working Paper Series ; No. IDB-WP-694

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Institutions and the Macroeconomy ; Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy: General (includes Measurement and Data) ; Economic History: Government, War, Law, International Relations, and Regulation: General, International, or Comparative
• Thema: Democracy ; Growth ; Democratic transitions ; Endogeneity

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Pozuelo, Julia Ruiz ; Slipowitz, Amy ; Vuletin, Guillermo
• Ereignis: Veröffentlichung
• (wer): Inter-American Development Bank (IDB)
• (wo): Washington, DC
• (wann): 2016

Weitere Informationen

• Handle: http://hdl.handle.net/10419/146477
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ