Democracy and growth: is the effect non-linear?

Libman, Alexander (2008): Democracy and growth: is the effect non-linear?

Abstract

The paper provides a survey of theoretical and empirical literature on non-linear impact of democracy on economic growth. First, it looks at two main approaches to the non-linearity: the U-shape and the inverse U-shape. Then it proceeds by looking at the specifics of hybrid regimes and tries to understand, whether the results could be driven by specific features of some semi-democracies and semi-autocracies. Finally, it discusses the opportunity to test the growth-and-democracy nexus using subnational data, and considers the first results of this approach.

• Item Type: MPRA Paper
• Language: English
• Keywords: democracy; growth; U-shaped relation
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O43 - Institutions and Growth; D - Microeconomics > D7 - Analysis of Collective Decision-Making > D72 - Political Processes: Rent-Seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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