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The Nexus Between Democracy and Economic Growth: Evidence from Dynamic Simultaneous-Equations Models

Author

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  • Nedra Baklouti

    (Faculty of Economics and Management, University of Sfax)

  • Younes Boujelbene

    (University of Sfax)

Abstract

The present paper is aimed to estimate an econometric model whereby the interrelationship between democracy and economic growth can be thoroughly investigated. For this purpose, dynamic simultaneous-equation panel data models have been applied to 12 MENA countries studied over the period 1998–2011. The reached empirical results have revealed that a bi-directional causal relationship appears to persist between democracy and economic growth.

Suggested Citation

  • Nedra Baklouti & Younes Boujelbene, 2018. "The Nexus Between Democracy and Economic Growth: Evidence from Dynamic Simultaneous-Equations Models," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(3), pages 980-998, September.
    • Handle: RePEc:spr:jknowl:v:9:y:2018:i:3:d:10.1007_s13132-016-0380-x
    DOI: 10.1007/s13132-016-0380-x
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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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    3. Oleksii Lyulyov & Tetyana Pimonenko & Natalia Stoyanets & Nataliia Letunovska, 2019. "Sustainable Development of Agricultural Sector: Democratic Profile Impact Among Developing Countries," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(4), pages 97-105, December.
    4. Mehmet Balcilar & Ojonugwa Usman & George N. Ike, 2023. "Investing green for sustainable development without ditching economic growth," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(2), pages 728-743, April.
    5. Nedra Baklouti & Younes Boujelbene, 2020. "A simultaneous equation model of economic growth and shadow economy: Is there a difference between the developed and developing countries?," Economic Change and Restructuring, Springer, vol. 53(1), pages 151-170, February.
    6. Nasreddine Kaidi & Sami Mensi, 2020. "Financial Development, Income Inequality, and Poverty Reduction: Democratic Versus Autocratic Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(4), pages 1358-1381, December.
    7. Younes Boujelbene & Nedra Baklouti, 2021. "The Causal Probabilistic Relationship Between Economic Development and Democracy: Evidence from Bayesian Networks Analysis," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 1, pages 27-42, March.

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    More about this item

    Keywords

    Economic growth; Democracy; Dynamic simultaneous-equations models;
    All these keywords.

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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