Democracy and growth: Evidence from SVMDI indices

Arbeitspapier

Evidence from a novel measure of democracy (SVMDI) based on Support Vector Machines highlights a robust positive relationship between democracy and economic growth. We argue that the ambiguity in recent studies can be traced back to the neglect of the information in the equation in levels and the lack of sufficient sensitivity of traditional democracy indicators. We further analyze the transmission channels through which democracy exerts its influence on growth, concluding that democratic countries have better educated populations, higher investment shares, lower fertility rates, but not necessarily higher levels of redistribution. The latter explains why we find only little indication of a nonlinear effect of democracy on growth.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Paper Series ; No. 131

Classification and Topics

• Classification: Wirtschaft ; Macroeconomic Analyses of Economic Development ; Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence ; Capitalist Systems: Political Economy ; Structure, Scope, and Performance of Government ; Index Numbers and Aggregation; Leading indicators
• Subject: Democracy ; Economic Growth ; Support Vector Machines

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gründler, Klaus ; Krieger, Tommy
• Event: Veröffentlichung
• (who): Julius Maximilian University of Würzburg, Chair of Economic Order and Social Policy
• (where): Würzburg
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/110277
• Last update: 10.03.2025, 11:44 AM CET