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Public Choice

, Volume 86, Issue 1–2, pp 175–198 | Cite as

New evidence on the relationship between democracy and economic growth

  • Jakob De Haan
  • Clemens L. J. Siermann
Article

Abstract

It is often maintained that democracy is a luxury which comes at a price in terms of subsequent slower increases in national living standards. However, various recent cross-section studies on economic growth have found evidence that lack of civil and political liberties is negatively correlated with economic growth. Using a new measure of democracy, which is based upon the number of years that a country can be regarded as a democracy, the robustness of this relationship is examined. Both direct and indirect effects of lack of democratic liberties are analysed. Our main conclusion is that the relationship between democracy and economic growth is not rubust.

Keywords

Economic Growth Indirect Effect Public Finance Living Standard Slow Increase 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Kluwer Academic Publishers 1996

Authors and Affiliations

  • Jakob De Haan
    • 1
  • Clemens L. J. Siermann
    • 1
  1. 1.Department of EconomicsUniversity of GroningenGroningen

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