Democracy and prosperity in two decades of transition

Thomas Apolte

No 26, CAWM Discussion Papers from University of Münster, Münster Center for Economic Policy (MEP)

Abstract: This paper revisits the relation between democracy, liberalization, and prosperity in transition countries, using a panel of 25 countries over 19 years. Earlier investigations found political and economic liberalization to be positively correlated whereas the relation between political liberalization and prosperity remained unclear. In this paper, a hump-shaped relationship between political liberalization and growth is found, such that a rise in democracy levels promotes growth only under initially low democracy levels. Furthermore, economic and political liberalization turn out to be positively related, but with surprisingly small coefficients.

Keywords: Transition Economics; Public Choice; Democracy; Growth (search for similar items in EconPapers)
JEL-codes: O43 P16 P36 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Democracy and prosperity in two decades of transition (2011)
Working Paper: Democracy and Prosperity in two Decades of Transition
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:cawmdp:26

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