Empirical Linkages Between Democracy and Economic Growth

Helliwell, John F.

doi:10.1017/s0007123400009790

Cited by 583 publications

(249 citation statements)

References 20 publications

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“…The coefficient of the interaction in column 1 stays robust to the inclusion of the democracy variable, which is still negative but gains in statistical power. It is interesting to see that positive democratic change itself has a negative effect on growth, which is in line with several previous studies (Gerring et al, 2005;Helliwell, 1994). In column 2, I control for the changes in the 'effective executive', which is determined by the form of governance: monarchy, presidential, parliamentarian, military or socialist.…”

Section: Robustness Testssupporting

confidence: 77%

Your development or mine? Effects of donor–recipient cultural differences on the aid-growth nexus

Minasyan

2016

Journal of Comparative Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Your development or mine? Effects of donor-recipient cultural differences on the aid-growth nexusAnna Minasyan* Department of Economics, University of Goettingen, Germany Abstract Development aid from the West may lead to adverse growth effects in the global South due to the neglected cultural context in the development framework. There is evidence that development agendas are mainly premised upon western thought and belief systems. Therefore, I hypothesize that the expected effect of development aid on the economic growth of recipients is impaired by cultural differences between western donors and aid recipients. I test this hypothesis empirically by augmenting an aid-growth model with proxy variables of cultural distance between donors and recipients. Namely, based on the theory of cultural transmission, I use donor-recipient weighted genetic distance, to capture vertical transmission of culture. Then, I use western education of the chief executive of the recipient country to capture horizontal transmission of culture. Results of OLS panel estimation in first differences for 1961-2010 period show that a one unit increase in donor-recipient genetic distance reduces the effect of aid on growth by 0.2 percentage points, if aid is increased by one percentage point. In turn, a one percentage point increase in aid yields, on average, 0.3 percentage point increase in growth after a decade, if the leader in power has western education.JEL classification: O111; O170; O190

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Section: Robustness Testssupporting

confidence: 77%

Your development or mine? Effects of donor–recipient cultural differences on the aid-growth nexus

Minasyan

2016

Journal of Comparative Economics

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Section: The Interpretation Of Resultsmentioning

confidence: 99%

“…Barro (1996) and Helliwell (1994) found that these indices are positively related to economic growth only when some explanatory variables are omitted from the relationship such as: education and investment rate. Isham et al (1997) analyzed the impact of the quality of governance on the performance of a hundred projects funded by the World Bank in some developing countries during the period 1974-1993.…”

Section: Civil Liberties Political and Economic Growthmentioning

confidence: 98%

“…The civil unrest, approximated by the frequencies of riots, strikes and protests are also negatively associated with performance of projects. Barro (1996), Helliwell (1994), Burkhart and Lewis-Beck (1994) have all concluded that the positive relationship between income and democracy is widely attributed to the effect of income on democracy and not vice versa.…”

Section: Civil Liberties Political and Economic Growthmentioning

confidence: 99%

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Institutions, Investment and Economic Growth

Hadhek¹

2012

IJEF

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The objective of this paper is to study the effect of institutional factors on investment and economic growth of a set of 11 countries in the MENA region during the period 2000-2009, using a model of dynamic panel data. The effect of institutions on the contribution of investment to economic growth has been a second empirical study in this paper. The key findings generated by these two empirical tests stipulate a significant relationship between institutional variables and investment on the one hand and economic growth on the other hand, a positive interaction between political institutions and investment and a negative interaction between political instability and investment.

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“…5, No. 2;2013 influence on the environmental sustainability such as Helliwell (1994), Perrotti (1996) and Barret and Graddy (2000). According to them, countries with a high degree of civil and political liberty tend to take stern action against any pollution/decay to progress the quality of the environment.…”

Section: There Is a Negative Relationship Between Population Density mentioning

confidence: 99%

Economic Growth and Environmental Sustainability: Empirical Evidence from East and South-East Asia

Alam¹,

Kabir²

2013

IJEF

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This study investigates the relationship between economic growth and environmental sustainability in the East and South-East Asian countries focused on the environmental Kuznets curve hypothesis, using data from environmental performance index (EPI) in 2010. Both pollution and eco-efficiency measures, two components of environmental sustainability, are considered as dependent variables while GDP per capita is used as an independent variable. Besides independent variable, the study also considers population density and civil and political liberty index (CIVLIB) as control variables and East and South-East Asia as a dummy variable. By using ordinary least square (OLS) method, this study reveals that while the increase of the GDP per capita appears to have positive impact on the pollution measures, it is found mix (both positive and negative) results on eco-efficiency measures. These findings prove the hypothesis of environmental Kuznets curve partially but not entirely. We conclude the paper by suggesting that the policy makers should give priority to the eco-efficiency measures along with pollution measures in order to ensure environmental sustainability in the process of economic development.

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Empirical Linkages Between Democracy and Economic Growth

Cited by 583 publications

References 20 publications

Your development or mine? Effects of donor–recipient cultural differences on the aid-growth nexus

Your development or mine? Effects of donor–recipient cultural differences on the aid-growth nexus

Institutions, Investment and Economic Growth

Economic Growth and Environmental Sustainability: Empirical Evidence from East and South-East Asia

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