A Sensitivity Analysis of the Impact of Democracy on Economic Growth

Jakob de Haan and Clemens L J Siermann

Empirical Economics, 1995, vol. 20, issue 2, 197-215

Abstract: Often it is maintained that democracy is a luxury which comes at a price in terms of subsequent slower increases in national living standards. However, various recent cross-section studies on economic growth have found evidence that lack of civil and political liberties is negatively correlated with economic growth. Using various measures of democracy the robustness of previous research is examined. Both direct and indirect effects of lack of civil and political liberties are analysed. Our main conclusion is that the relationship between democracy and economic growth is not robust.

Date: 1995
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