1. bookVolume 9 (2019): Issue 4 (December 2019)
Journal Details
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Format
Journal
eISSN
2674-4619
First Published
18 Jun 2013
Publication timeframe
2 times per year
Languages
English
Open Access

Democracy and Economic Development: Disentangling the Effect of Elections and Rule of Law

Published Online: 31 Dec 2019
Volume & Issue: Volume 9 (2019) - Issue 4 (December 2019)
Page range: 173 - 205
Journal Details
License
Format
Journal
eISSN
2674-4619
First Published
18 Jun 2013
Publication timeframe
2 times per year
Languages
English
Abstract

The article provides evidence on how the political settlements—rule of law and elections—would affect the economic development and enhances the economic growth. It empirically investigates whether democracy affects the economic convergence of countries through the quality of institutions: (i) electoral component of democracy, and (ii) rule of law parameters. Investigations differentiate between Islamic and non-Islamic countries. We find that the elections parameter has a first-order effect on economic development; such a relationship is not confirmed for Islamic countries. Rule of law also influences this relationship, but brings less efficient impact to the economic development. Our results are obtained using a sample of 167 countries over the 2010–2012 period.

Keywords

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