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Democracy and economic freedom in a global modernization process: the case of Ukraine

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  • Olena Liakhovets

    (Petro Mohyla Black Sea State University, Ukraine)

Abstract

The paper deals with the basic social and economic values which are associated with the modernization process in the economy of Ukraine. The analysis of statistical data shows that Ukraine is moving too slowly towards modernization, which is threatening for its stable economic development. There are many institutional factors that affect the modernization process. According to most scientists, among them are obsolescence of economic and social institutions, lack of innovation incentives, lack of interest of the state elites in profound changes, underdevelopment of democracy etc. among them. Democracy is considered to be the main consequence of the economic reforms as several researches have shown. We build linear regression to verify the assumption that modernization is closely associated with democracy using Polity IV and Freedom House indicators in Ukraine. As a result, the democracy level does not appear to be a consequence of the economic reforms success in Ukraine. Thus we assume that other institutional expressions of democracy combined in the Index of Economic Freedom are associated with economic development, such as income per capita. The model we build represents a close link between the Index of Economic Freedom and log income per capita, which is evidence of that the freedom in business, labour, trade and some other economic issues are the complements of modernization in Ukraine.

Suggested Citation

  • Olena Liakhovets, 2013. "Democracy and economic freedom in a global modernization process: the case of Ukraine," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 6(2), pages 160-171, December.
    • Handle: RePEc:rse:wpaper:v:6:y:2013:i:2:p:160-171
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    References listed on IDEAS

    as
    1. Acemoglu, Daron & Johnson, Simon & Robinson, James A. & Yared, Pierre, 2009. "Reevaluating the modernization hypothesis," Journal of Monetary Economics, Elsevier, vol. 56(8), pages 1043-1058, November.
    2. Lipset, Seymour Martin, 1959. "Some Social Requisites of Democracy: Economic Development and Political Legitimacy1," American Political Science Review, Cambridge University Press, vol. 53(1), pages 69-105, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    democracy; economic freedom; globalization; income per capita; modernization;
    All these keywords.

    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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