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Does Rapid Economic Growth Accelerate Democratization? Time-Series Evidence from High Performing Asian Economies

Author

Listed:
  • Linda Chor Wing Yung

    (Department of Economics, the Chinese University of Hong Kong)

  • Sam Hak-Kan Tang

    (Department of Economics, The University of Western Australia)

Abstract

We examine the direction of causality between growth and democratization for the high performing Asian economies using a new time-series technique called autoregressive distributive lag. We find that for all eight of such economies, the direction of causality runs consistently from democratization to growth and not the other way around. Rapid growth in the high performing economies appears to have little effect on democratization. We also find that the net effect of democratization on growth is not always positive. Against the widely-held view that growth enhances democratization, our evidence suggests that rapidly developing countries under authoritarian rule are unlikely to improve their democratic institutions.

Suggested Citation

  • Linda Chor Wing Yung & Sam Hak-Kan Tang, 2005. "Does Rapid Economic Growth Accelerate Democratization? Time-Series Evidence from High Performing Asian Economies," Economics Discussion / Working Papers 05-20, The University of Western Australia, Department of Economics.
    • Handle: RePEc:uwa:wpaper:05-20
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    References listed on IDEAS

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    Cited by:

    1. Kaya MUHAMMED VEYSEL & Yılmaz SUAT SERHAT, 2019. "Does Economic Growth Need Democracy? An Application on Islamic Countries with System-GMM Approach," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 156-161.

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    More about this item

    Keywords

    Growth; Democratization; High performing Asian economies;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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