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How Much Do Rights Matter?

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  • Fedderke, Johannes
  • Klitgaard, Robert

Abstract

Do better political rights yield more economic development? By addressing the econometric challenges plaguing this question, we find support for a positive impact of rights on development. For a significant grouping of countries the association is nonlinear: the positive impact of rights is particularly strong at low rights levels; it is either absent or negative in an intermediate rights range; and returns to a moderate positive impact at high levels of rights. There is also evidence to suggest that transitions from autocratic political dispensations are associated with significant negative output shocks.

Suggested Citation

  • Fedderke, Johannes & Klitgaard, Robert, 2013. "How Much Do Rights Matter?," World Development, Elsevier, vol. 51(C), pages 187-206.
    • Handle: RePEc:eee:wdevel:v:51:y:2013:i:c:p:187-206
    DOI: 10.1016/j.worlddev.2013.05.009
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