<abstract xmlns="http://www.w3.org/1999/xhtml"><p>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.</p></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.

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

TalTech Journal of European Studies

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The article provides evidence on how the political settlements—rule of law and elections—would affect the economic development and enhances the economic...

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

Published Online: Dec 31, 2019

Page range: 173 - 205

DOI: https://doi.org/10.1515/bjes-2019-0042

Keywords
democracy, economic growth, election, instrumental variable approach, rule of law

© 2019 Yassine Bakkar et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

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

Published Online: Dec 31, 2019

Page range: 173 - 205

DOI: https://doi.org/10.1515/bjes-2019-0042

Keywordsdemocracy, economic growth, election, instrumental variable approach, rule of law

© 2019 Yassine Bakkar et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
democracy, economic growth, election, instrumental variable approach, rule of law