Democracy and Economic Development: Disentangling the Effect of Elections and Rule of Law

Bakkar Yassine () and Ögcem Ali Recayi ()
Additional contact information
Bakkar Yassine: School of Business and Governance, Tallinn University of Technology, Akadeemia tee 3, Tallinn12618, Estonia
Ögcem Ali Recayi: Department of Economics, University of Warwick, Coventry CV4 7AL, United Kingdom

TalTech Journal of European Studies, 2019, vol. 9, issue 4, 173-205

Abstract: The article provides evidence on how the political settlements—rule of law and elections—would affect the economic development and enhances the economic growth. It empirically investigates whether democracy affects the economic convergence of countries through the quality of institutions: (i) electoral component of democracy, and (ii) rule of law parameters. Investigations differentiate between Islamic and non-Islamic countries. We find that the elections parameter has a first-order effect on economic development; such a relationship is not confirmed for Islamic countries. Rule of law also influences this relationship, but brings less efficient impact to the economic development. Our results are obtained using a sample of 167 countries over the 2010–2012 period.

Keywords: democracy; economic growth; election; instrumental variable approach; rule of law (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/bjes-2019-0042 (text/html)

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: https://EconPapers.repec.org/RePEc:vrs:bjeust:v:9:y:2019:i:4:p:173-205:n:8

DOI: 10.1515/bjes-2019-0042

Access Statistics for this article

TalTech Journal of European Studies is currently edited by Tanel Kerikmäe and Matti Rudanko

More articles in TalTech Journal of European Studies from Sciendo
Bibliographic data for series maintained by Peter Golla ().