Democracy Versus Dictatorship? The Political Determinants of Growth Episodes

Abstract

In contrast to previous literature, which looks at the effect of democracy on long-run growth or short-run volatility of growth, we examine the effect of political institutions on medium-term growth episodes. These are episodes of accelerations and decelerations that characterise the growth experience of most developing countries. We find that the effect of political institutions on growth is asymmetric across accelerations and decelerations, and that democracies do not necessarily outperform autocracies in a growth acceleration episode, though they are likely to prevent large growth collapses. When we disaggregate the type of autocracy, we find that partybased autocracies outperform democracies in growth acceleration episodes, though they do not limit the fall in the magnitude in growth deceleration episodes in comparison to democracies.

Business Demography and Economic Growth: Similarities and Disparities in 10 European Union Countries

“…The success and the efficiency of the European economic model derives from the ability to identify, channel, and make the best of the resources and specific features of each member state, in tune with their development priorities. Investigating the influence of democracy or dictatorship in determining the economic growth in some in developing countries (Sen et al, 2018) highlights that long-run growth is not often compatible with the stylized facts of economic growth and the inconsistence of the political regime determine fluctuant evolution of the business economics.…”