Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/329517 
Year of Publication: 
2025
Citation: 
[Journal:] Economies [ISSN:] 2227-7099 [Volume:] 13 [Issue:] 8 [Article No.:] 237 [Year:] 2025 [Pages:] 1-18
Publisher: 
MDPI, Basel
Abstract: 
This paper investigates how democracy influences economic growth through innovation and institutional quality. Using an augmented Solow growth model and panel-data mediation analysis across 123 countries (2011-2022), we quantify democracy's impact on GDP per capita. Our results show that institutional quality accounts for 83.3% of democracy's total effect on economic output, while innovation explains only 16.7%. This study contributes to the literature by distinguishing between institutional and innovation channels in the democracy-growth nexus and provides policy-relevant insights for promoting inclusive economic growth (SDG 8) and building resilient infrastructure and innovation (SDG 9).
Subjects: 
democratic backsliding
democratic institutions
economic growth
innovation
mediation analysis
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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