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Title:Democratic transition, The : a study of the causality between income and the Gastil democracy index PDF Logo
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:Kieler Arbeitspapiere, IfW
Publikationen von Forscherinnen und Forschern des IfW

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