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Does Democracy Promote The Rule Of Law?

Author

Listed:
  • ANDREAS ASSIOTIS

    (University of Cyprus, Cyprus)

  • KEVIN SYLWESTER

    (Southern Illinois University, Carbondale, USA)

Abstract

Recent studies find that democracy increases economic growth but often do not address through what channels such an effect could travel. This study considers whether or not democracy strengthens the rule of law, an institutional measure purported to increase economic growth. Utilizing a panel dataset from 1984 to 2007 for 127 countries and both fixed effect and dynamic GMM methodologies, we examine whether democracy promotes the rule of law. We generally find a short run positive influence upon the rule of law although effects are greatest for low income countries.

Suggested Citation

  • Andreas Assiotis & Kevin Sylwester, 2015. "Does Democracy Promote The Rule Of Law?," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 40(1), pages 63-92, March.
    • Handle: RePEc:jed:journl:v:40:y:2015:i:1:p:63-92
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    References listed on IDEAS

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    Cited by:

    1. Tommy Krieger, 2022. "Democracy and the quality of economic institutions: theory and evidence," Public Choice, Springer, vol. 192(3), pages 357-376, September.
    2. Krieger, Tommy, 2022. "Democracy and the quality of economic institutions: Theory and evidence," ZEW Discussion Papers 22-032, ZEW - Leibniz Centre for European Economic Research.
    3. Lebedev, Sergey & Sun, Sunny Li & Markóczy, Lívia & Peng, Mike W., 2021. "Board political ties and firm internationalization," Journal of International Management, Elsevier, vol. 27(3).
    4. Krieger, Tommy, 2019. "Democracy and institutional quality: Theory and Evidence," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203507, Verein für Socialpolitik / German Economic Association.

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    More about this item

    Keywords

    Democratization; Institutions; Rule of Law; Economic Growth;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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