Does Law and Order Attenuate the Benefits of Democracy on Economic Growth?

Andreas Assiotis and Kevin Sylwester

Economica, 2015, vol. 82, issue 328, 644-670

Abstract: type="main" xml:id="ecca12124-abs-0001">

Recent studies have reported positive associations between democracy and economic growth. They have also explored how associations could differ across regions or income levels. However, might the effects of democracy on growth also depend on factors such as institutions promoting law and order? Using a panel specification, we employ a democracy–law and order interactive term to examine if the effects of democracy on economic growth depend on these other institutions. We find that positive effects of democracy diminish and might even turn negative in countries where other institutions such as those supporting law and order are strong.

Date: 2015
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