Exogenous variation

Richer nations are more likely to sustain democracy

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Unformatted text preview: acteristics should be universal in any definition of “democracy” Ignore those that talk about “western” concepts of democracy or those who say “every country chooses its own form of democracy” The argument: Need to identify possible “channels” by which democracy ! growth and development Non- institutional channels (to be tested empirically) Stability? Human capital? Physical capital? Trade openness? Income equality? Institutional channels Constraints, checks and balances Contracts The evidence: No clear, robust relationship between democracy and growth Tavares and Wacziarg find that democracies more likely to: Accumulate human capital Reduce inequality Reduce rate of physical capital accumulation Strong evidence that richer countries are more democratic But which direction for causality? Democracies more likely to emerge as countries get richer (democracy is “endogenous”) There is a general process of modernization of which democracy is the final stage Modernization = differentiation and specialization of social structures resulting from industrialization, urbanization Modernization argument: The more well- to- do a nation, the greater the chances that it will sustain democracy Seymour Lipset Political Order theory: critic of modernization Economic development unleashes profound social changes...
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This document was uploaded on 03/28/2014 for the course INAF 252 at Georgetown.

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