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Title:Democracy and development : the devil in the details PDF Logo
Authors:Persson, Torsten
Tabellini, Guido
Issue Date:2006
Series/Report no.:CESifo working papers 1672
Abstract:Does democracy promote economic development? This paper reviews recent attempts to address this question that exploited within-country variation. It shows that the answer is largely positive, but also depends on the details of democratic reforms. First, the sequence of economic vs political reforms matters: countries liberalizing their economy before extending political rights do better. Second, different forms of democratic government lead to different economic policies, and this might explain why presidential democracy leads to faster growth than parliamentary democracy. Third, it is important to distinguish between expected and actual political reforms. Taking expectations of regime change into account helps identify a stronger growth effect of democracy.
Subjects:democracy
reform
growth
institutions
difference in difference
JEL:E0
O1
P0
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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