Democracy and Economic Growth: A Social Level Measurement of Growth
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2019-08
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Abstract
There are contradictory findings in the literature about the effect democracy has on economic growth. In the current literature, the research indicates that democracy positively influences economic growth directly as it ensures property rights and improves business environment through advanced technological innovation. Yet, there is substantial research that states that there is no evidence that democracy has a considerable effect on economic growth. This article examines individual/ country specific indicators such as Human Rights Protection Score, Political Regime Score, Child Mortality Rates, and Years of Schooling and the effects this has on economic growth, measured by GDP per capita. This article utilizes a pooled time series cross sectional analysis to analyze the said variables from 1985-2014 in 145 countries. The existing literature analyzes hard indicators such as property rights and technological innovation to measure economic growth. This article takes a different approach as it aims to research a more social aspect of countries and how this effects GDP per capita. This study finds that years of schooling is the most significant variable affecting GDP per capita.
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democracy, economic growth, social indicators