Democracy and Growth: Evidence of a new measurement

Tommy Krieger and Klaus Gründler ()

VfS Annual Conference 2016 (Augsburg): Demographic Change from Verein für Socialpolitik / German Economic Association

Abstract: We present a novel approach for measuring democracy based on Support Vector Machines, a mathematical algorithm for pattern recognition. The Support Vector Machines Democracy Index (SVMDI) is continuous on the 0-1-interval and enables very detailed and sensitive measurement of democracy for 185 countries in the period between 1981 and 2011. Application of the SVMDI highlights a robust positive relationship between democracy and economic growth. We argue that the ambiguity in recent studies mainly originates from the lack of sensitivity of traditional democracy indicators. Analyzing transmission channels through which democracy exerts its influence on growth, we conclude that democratic countries have better educated populations, higher investment shares, and lower fertility rates, but not necessarily higher levels of redistribution.

JEL-codes: C43 O11 P16 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-gro and nep-pol
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Related works:
Working Paper: Democracy and Growth: Evidence of a New Measurement (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc16:145720

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