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Estimating the effects of democratization in African countries: A simultaneous equations approach

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  • Green, Alan

Abstract

This paper analyzes impacts of democratization in Africa, including effects of improved, property rights on economic growth and of greater political participation on civil violence. Democracy is endogenous to economic growth and other outcomes, which hampers most, empirical analysis. This paper uses a minimum distance simultaneous equations estimation to, account for all endogenous variables while including time and country fixed effects. The method yields a test of fit of the model, which is strong. Results indicate a positive significant effect of property rights institutions on economic growth in the presence of time and country fixed effects. Estimates also show a negative significant effect of political participation on civil violence and, strong effects of aid per capita on both economic growth and civil violence.

Suggested Citation

  • Green, Alan, 2013. "Estimating the effects of democratization in African countries: A simultaneous equations approach," Economic Systems, Elsevier, vol. 37(4), pages 555-571.
    • Handle: RePEc:eee:ecosys:v:37:y:2013:i:4:p:555-571
    DOI: 10.1016/j.ecosys.2013.02.003
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    Cited by:

    1. Lewkowicz, Jacek & Woźniak, Michał & Wrzesiński, Michał, 2022. "COVID-19 and erosion of democracy," Economic Modelling, Elsevier, vol. 106(C).

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    More about this item

    Keywords

    Democracy; Growth; Institutions; Simultaneous equations; Fixed effects; Africa;
    All these keywords.

    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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