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The Modern World: The effect of democracy, colonialism and war on economic growth 1820-2000

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  • Branko Milanovic

    (World Bank)

Abstract

The paper uses the recently available data on growth rates, democracy, protectionism, and wars over the period 1820 to 2000 to look at the determinants of economic growth over the long-term. It is motivated by the following questions: what is the effect of democracy on growth, was colonialism economically bad for colonies, does protectionism affect growth negatively, what is the effect of wars? We find that own democracy has a significant positive impact on growth which increases as country’s income goes up. (Overall level of democracy in the world however has no effect on growth.) The effect of colonialism is not statistically significant. Lower average level of protection in the world helps growth. Wars, whether civil or between the states, are strongly detrimental to economic growth.

Suggested Citation

  • Branko Milanovic, 2005. "The Modern World: The effect of democracy, colonialism and war on economic growth 1820-2000," Development and Comp Systems 0509002, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpdc:0509002
    Note: Type of Document - pdf; pages: 57
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/dev/papers/0509/0509002.pdf
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    References listed on IDEAS

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    13. repec:zbw:bofitp:2002_013 is not listed on IDEAS
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    Cited by:

    1. Branko Milanovic, 2005. "Relationship between Income and Emergence of Democracy Reexamined, 1820-2000: A non-parametric approach," Law and Economics 0509004, University Library of Munich, Germany.
    2. Alberto Chilosi, 2010. "Poverty, Population, Inequality, and Development: the Historical Perspective," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 7(2), pages 469-501, December.

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    More about this item

    Keywords

    growth; democracy; protectionism; war; colonialism; communism;
    All these keywords.

    JEL classification:

    • O - Economic Development, Innovation, Technological Change, and Growth
    • P - Political Economy and Comparative Economic Systems

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