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Civil liberty and economic growth in the world: a long-run perspective, 1850–2010

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  • ALFONSO-GIL, JAVIER
  • LACALLE-CALDERÓN, MARICRUZ
  • SÁNCHEZ-MANGAS, ROCÍO

Abstract

The objective of this paper is to study the relationship between economic growth and civil liberty across the globe in the long run. To fulfill this aim, we use an unbalanced panel of 149 countries for the period 1850–2010 with data on gross domestic product (GDP) from Maddison, and data on civil liberties from Polity IV. The dynamics of both variables are investigated. Once country and time effects are accounted for in a dynamic panel data model, our results show that movements toward higher levels of civil liberty are associated with higher economic growth rates. Therefore, we find that civil liberties are a relevant factor to explain economic growth. We perform some sensitivity tests that confirm the robustness of our results.

Suggested Citation

  • Alfonso-Gil, Javier & Lacalle-Calderón, Maricruz & Sánchez-Mangas, Rocío, 2014. "Civil liberty and economic growth in the world: a long-run perspective, 1850–2010," Journal of Institutional Economics, Cambridge University Press, vol. 10(3), pages 427-449, September.
    • Handle: RePEc:cup:jinsec:v:10:y:2014:i:03:p:427-449_00
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    Cited by:

    1. Kutuk, Yasin, 2022. "Inequality convergence: A world-systems theory approach," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 150-165.
    2. Coro Chasco & Maricruz Lacalle-Calderon & Javier Alfonso-Gil, 2021. "Spatial Diffusion of Civil Liberty," Revista Economía, Fondo Editorial - Pontificia Universidad Católica del Perú, vol. 44(87), pages 146-169.
    3. Coro CHASCO & Maricruz LACALLE-CALDERON & Javier ALFONSO-GIL, 2017. "Key determinants of civil liberty: a spatial analysis of 175 countries for the year 2010," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 17(2), pages 19-32.
    4. Shana M. Sundstrom & Craig R. Allen & David G. Angeler, 2020. "Scaling and discontinuities in the global economy," Journal of Evolutionary Economics, Springer, vol. 30(2), pages 319-345, April.
    5. Petar Stankov, 2017. "Economic Freedom and Welfare Before and After the Crisis," Springer Books, Springer, number 978-3-319-62497-6, June.

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