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http://hdl.handle.net/10419/24853
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| Title: | | Democratic transition, The : a study of the causality between income and the Gastil democracy index  |
| Authors: | | Paldam, Martin Gundlach, Erich |
| Issue Date: | | 2008 |
| Citation: | | [Series:] Kiel working paper [No.:] 1459 [Editor:] Kiel Inst. for the World Economy, Kiel |
| Series/Report no.: | | Kiel working paper 1459 |
| Abstract: | | The paper considers the transformation of the political system as countries pass through the Grand Transition from a poor developing country to a wealthy developed country. In the process most countries change from an authoritarian to a democratic political system. This is shown by using the Gastil democracy index from Freedom House. First, the basic pattern of correlations reveals that a good deal of the short- to medium-run causality appears to be from democracy to income. Then a set of extreme biogeographic instruments is used to demonstrate that the long-run causality is from income to democracy. The long-run result survives various robustness tests. We show how the Grand Transition view resolves the seeming contradiction between the long-run and the short- to medium-run effects. |
| Subjects: | | Paths of development democracy biogeography |
| JEL: | | B25 O1 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des IfW Kieler Arbeitspapiere, IfW Economists Online
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