Democracy and economic growth Online publication date: Mon, 29-Oct-2018
by Rita Yi Man Li; Edward Chi Ho Tang; Tat Ho Leung
International Journal of Data Analysis Techniques and Strategies (IJDATS), Vol. 11, No. 1, 2019
Abstract: Many nations consider democracy to be an important social value. Nevertheless, does it mean that countries with more democracy are often wealthier? What are the relationships between economic growth and democracy? This research includes 167 countries to study the issue. We employ the data of the democracy index, corruption perception index, inflation, population, number of internet users, balance of trade, foreign direct investment, etc. We have also included sub-indices such as the electoral process and pluralism, functioning of government, political participation, culture, and civil liberties. An innovative part of the paper is how the corruption perception index has been included in our analysis. Besides, principal component analysis is applied to study the relationship between democracy and economic growth. We conclude that it takes democracy a very long time to affect the macro-economy. The fast pace of change in democracy even harms the macro-economy. If the economy reaches a well-developed stage, the economy will gradually transform into a democratic city automatically in the absence of any external pressure.
Online publication date: Mon, 29-Oct-2018
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Data Analysis Techniques and Strategies (IJDATS):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email firstname.lastname@example.org