Democratic capital and economic growth in the countries of the third wave of democratization

IF 0.3 Q4 ECONOMICS

Zhurnal Novaya Ekonomicheskaya Assotsiatsiya-Journal of the New Economic Association Pub Date : 2023-01-01 DOI:10.31737/22212264_2023_1_12

М. А. Пахнин, Р.О. Шаповалов, Журнал Нэа, М. А. Пахнин

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Abstract

In this paper, we study the effect of democracy on economic growth. We provide an overview of theoretical models analyzing the relationship between political regime and economic growth, and characterize the existing empirical results. Theoretical considerations suggest that it is accumulated and not instantaneous level of democracy that affects economic development. In order to capture this idea, we introduce the notion of democratic capital. We estimate the impact of democratic capital on GDP per worker growth rates in a dynamic panel data model from 1990 to 2019 in a sample of 70 countries that have recently transitioned to democracy. Our GMM estimates show that for countries of the third wave of democratization it's capital of democracy has a robustly positive impact on economic growth. The effect of democratic capital is most pronounced in Europe and Latin America, which can be explained by the prevalence of democracy in neighboring countries. Furthermore, the effect of democratic capital is most pronounced in partial democracies than in full or failed democracies, which can be explained by the trade-off between the governmental rent-seeking and public desire for redistribution.

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民主资本与第三波民主化国家的经济增长

本文主要研究民主对经济增长的影响。我们概述了分析政治制度与经济增长关系的理论模型，并对现有的实证结果进行了描述。从理论上考虑，影响经济发展的是积累而非瞬时的民主水平。为了抓住这个概念，我们引入了民主资本的概念。我们在一个动态面板数据模型中估计了1990年至2019年民主资本对人均GDP增长率的影响，样本包括70个最近向民主过渡的国家。我们的GMM估计表明，对于第三波民主化的国家来说，它的民主资本对经济增长具有强大的积极影响。民主资本的影响在欧洲和拉丁美洲最为明显，这可以用民主在邻国的盛行来解释。此外，民主资本的影响在部分民主国家比在完全民主或失败民主国家更为明显，这可以用政府寻租和公众重新分配愿望之间的权衡来解释。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Zhurnal Novaya Ekonomicheskaya Assotsiatsiya-Journal of the New Economic Association ECONOMICS-

CiteScore

1.00

自引率

20.00%

发文量

期刊介绍： Key Journal''s objectives: bring together economists of different schools of thought across the Russian Federation; strengthen ties between Academy institutes, educational establishments and economic research centers; improve the quality of Russian economic research and education; integrate economic science and education; speed up the integration of Russian economic science in the global mainstream of economic research. The Journal publishes both theoretical and empirical articles, devoted to all aspects of economic science, which are of interest for wide range of specialists. It welcomes high-quality interdisciplinary projects and economic studies employing methodologies from other sciences such as physics, psychology, political science, etc. Special attention is paid to analyses of processes occurring in the Russian economy. Decisions about publishing of articles are based on a double-blind review process. Exceptions are short notes in the section "Hot Topic", which is usually formed by special invitations and after considerations of the Editorial Board. The only criterion to publish is the quality of the work (original approach, significance and substance of findings, clear presentation style). No decision to publish or reject an article will be influenced by the author belonging to whatever public movement or putting forward ideas advocated by whatever political movement. The Journal comes out four times a year, each issue consisting of 12 to 15 press sheets. Now it is published only in Russian. The English translations of the Journal issues are posted on the Journal website as open access resources.