Democracy and the quality of economic institutions: Theory and evidence

Arbeitspapier

We present a simple model, illustrating how democracy may improve the quality of the economic institutions. The model further suggests that institutional quality varies more across autocracies than across democracy and that the positive effect of democracies on economic institutional quality increases in people's human capital. Using a panel data set that covers 150 countries and the period from 1920 to 2019, and different measures of economic institutional quality, we show results from fixed effect and instrumental variable regressions that are in line with the predictions of our model.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ZEW Discussion Papers ; No. 22-032

Classification and Topics

• Classification: Wirtschaft ; Bureaucracy; Administrative Processes in Public Organizations; Corruption ; Structure, Scope, and Performance of Government ; Institutions and Growth ; Capitalist Systems: Property Rights ; Other Economic Systems: Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
• Subject: Democracy ; Development ; Economic Institutions ; Human Capital ; Political Economy ; Political Transitions

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Krieger, Tommy
• Event: Veröffentlichung
• (who): ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
• (where): Mannheim
• (when): 2022

Further information

• Handle: http://hdl.handle.net/10419/263249
• Last update: 10.03.0011, 11:42 AM CET