DEMOCRACY AND GROWTH: A PERSPECTIVE FROM DEMOCRATIC EXPERIENCE |
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| Authors: | Tay‐Cheng Ma Lishu Ouyang |
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| Affiliation: | 1. 886 22861 0511 ext. 29327886 22862 5229;2. Professor, Department of Economics, Chinese Culture University, Taipei 11114, Taiwan;3. 886 22861 0511 ext. 29332886 22351 9214;4. Associate Professor, Department of Economics, Chinese Culture University, Taipei 11114, Taiwan |
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| Abstract: | This article investigates the impact of democracy on growth by simultaneously considering a country's secular‐historical experience of democracy and current political regime. The results obtained show that the effect of democracy on growth exhibits an asymmetrical pattern depending on the country's democracy stock. Only in “democratic countries” with “prolonged experiences of democratic rule” can democracy promote growth. This claim stands in contrast to the earlier literature in which there is either no consistent relationship between growth and democracy or perhaps a nonlinear relationship. This conclusion provides circumstantial support for the claim of the “democracy promotes growth” hypothesis. (JEL O43) |
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