EconPapers    
Economics at your fingertips  
 

The Democratic Transition. A study of the causality between income and the Gastil democracy index

Erich Gundlach () and Martin Paldam

Economics Working Papers from Department of Economics and Business Economics, Aarhus University

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.

Keywords: Paths of development; democracy; biogeography (search for similar items in EconPapers)
JEL-codes: B25 O1 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cdm, nep-dev and nep-pol
Date: 2008-10-21
References: Add references at CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
ftp://ftp.econ.au.dk/afn/wp/08/wp08_15.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:aah:aarhec:2008-15

Access Statistics for this paper

More papers in Economics Working Papers from Department of Economics and Business Economics, Aarhus University
Series data maintained by ().

 
Page updated 2017-07-07
Handle: RePEc:aah:aarhec:2008-15