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Democracy and Growth: Is The Effect Non-Linear?

Author

Listed:
  • Alexander Libman

    (Frankfurt School of Finance and Management, Frankfurt am Main, Germany, and Russian Academy of Sciences, Moscow, Russia)

Abstract

The paper provides a survey of theoretical and empirical literature on non-linear impact of democracy on economic growth. First, it looks at two main approaches to the non-linearity: the U-shape and the inverse U-shape. Then it proceeds by looking at the specifics of hybrid regimes and tries to understand, whether the results could be driven by specific features of some semi-democracies and semi-autocracies. Finally, it discusses the opportunity to test the growthand- democracy nexus using sub-national data, and considers the first results of this approach.

Suggested Citation

  • Alexander Libman, 2012. "Democracy and Growth: Is The Effect Non-Linear?," Economic Research Guardian, Weissberg Publishing, vol. 2(1), pages 99-120, May.
    • Handle: RePEc:wei:journl:v:2:y:2012:i:1:p:99-120
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    File URL: http://www.ecrg.ro/files/p2012.2(1)3y6.pdf
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    References listed on IDEAS

    as
    1. Kjell Hausken & Christian W. Martin & Thomas Plümper, 2004. "Government Spending and Taxation in Democracies and Autocracies," Constitutional Political Economy, Springer, vol. 15(3), pages 239-259, September.
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    Cited by:

    1. Tay-Cheng Ma & Lishu Ouyang, 2016. "Democracy And Growth: A Perspective From Democratic Experience," Economic Inquiry, Western Economic Association International, vol. 54(4), pages 1790-1804, October.
    2. Fernando Tohmé & M. Ángeles Caraballo & Carlos Dabús, 2022. "Instability, political regimes and economic growth. A theoretical framework," Metroeconomica, Wiley Blackwell, vol. 73(1), pages 291-317, February.
    3. Davis, Lewis S., 2018. "Political economy of growth with a taste for status," Journal of Public Economics, Elsevier, vol. 168(C), pages 35-46.

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    More about this item

    Keywords

    Democracy; Economic growth; Hybrid regimes; Non-linear effects; Bureaucratic autocracies;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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