EconPapers    
Economics at your fingertips  
 

Democracy, Diversification and Growth Reversals

David Cuberes () and Michal Jerzmanowski ()

Economic Journal, 2009, vol. 119, issue 540, 1270-1302

Abstract: There is much evidence that less democratic countries experience more high-frequency growth volatility. In this article we report a similar finding about volatility in the medium term: we find evidence that reversals of trend-growth are sharper and more frequent in non-democracies. Motivated by this evidence, we construct a model in which non-democracies have high barriers to entry for new firms. This leads to less sectoral diversification and so, in an uncertain environment, to larger growth swings in less democratic countries. We present empirical evidence that confirms the positive relation between democracy and industrial diversification. Copyright © The Author(s). Journal compilation © Royal Economic Society 2009.

Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (35) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Democracy, Diversification and Growth Reversals (2009) Downloads
Working Paper: Democracy, Diversification, and Growth Reversals (2008) Downloads
Working Paper: Democracy, Diversification, and Growth Reversals (2008) Downloads
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: https://EconPapers.repec.org/RePEc:ecj:econjl:v:119:y:2009:i:540:p:1270-1302

Ordering information: This journal article can be ordered from
http://www.blackwell ... al.asp?ref=0013-0133

Access Statistics for this article

Economic Journal is currently edited by Martin Cripps, Steve Machin, Woulter den Haan, Andrea Galeotti, Rachel Griffith and Frederic Vermeulen

More articles in Economic Journal from Royal Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and Christopher F. Baum ().

 
Page updated 2021-10-19
Handle: RePEc:ecj:econjl:v:119:y:2009:i:540:p:1270-1302