The Economic Significance of Democracy

Zhang Yuyan

Chinese Economy, 1999, vol. 32, issue 4, 85-97

Abstract: Economists are known to love to apply their omnipotent tools of economic analysis to just about every phenomena, including natural ones. Whether this basic "flaw" by economists will result in a general social crisis, or simply undermine their own academic credentials, I cannot say. But one thing is certain: the only hope they have of making a contribution to humanity is by the short-cut route offered by this "flaw." Such an effort is apparent in the topic I have chosen for my paper, namely, the economic significance of democracy. To understand my reasons for pursuing this issue, look no further than the recent article by the economist Mancur Olson (University of Maryland) entitled "Dictatorship, Democracy, and Development" (>i>American Political Science Review>/i> 87, no. 3, September 1993, pp. 567-76).

Date: 1999
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