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Democracy, Governance, and Economic Growth: Theory and Evidence
Abstract
The paper examines how democracy affects long‐run growth by influencing the quality of governance. Empirical evidence is first presented showing that measures of the quality of governance are substantially higher in more democratic countries. A general‐equilibrium, endogenous growth model is then built to show how a governance‐improving democracy raises growth. In this model, stronger democratic institutions influence governance by constraining the actions of corrupt officials. Reducing corruption, in turn, stimulates technological change and spurs economic growth. Empirical evidence is presented showing that democracy is in fact a significant determinant of total factor productivity (TFP) growth between 1960 and 1990 in a cross‐section of countries. But this contribution occurs only insofar as stronger democratic institutions are associated with greater quality of governance.
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Citations
Cited by
Democracy and Economic Growth: A Meta‐Analysis
Doucouliagos, H., & Ulubaşoğlu, M. A. (2008) · American Journal of Political Science · doi:10.1111/j.1540-5907.2007.00299.x · Cited by 584
Pollution, shadow economy and corruption: Theory and evidence
Biswas, A. K., Farzanegan, M. R., & Thum, M. (2012) · Ecological Economics · doi:10.1016/j.ecolecon.2012.01.007 · Cited by 360
Kapstein, E. B., & Converse, N. (2008) · doi:10.1017/cbo9780511817809 · Cited by 149
Bjørnskov, C., & Méon, P.-G. (2015) · World Development · doi:10.1016/j.worlddev.2015.01.015 · Cited by 138
Metadata
- Authors
- Rivera‐Batiz, F. L.
- Venue
- Review of Development Economics
- Publisher
- Wiley
- Published
- 2002-06
- Volume
- 6
- Issue
- 2
- Pages
- 225-247
- ISSN
- 1363-6669 (ISSN-L)
- 1467-9361
- OpenAlex
- W3124327116
- Cited by
- 237
- References
- 0
- FWCI
- 13.02
- Type
- journal article
- Language
- en
- Open access
- closed
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- CoChat. (2026). Citation check: Democracy, Governance, and Economic Growth: Theory and Evidence. https://app.cochat.ai/papers/10.1111/1467-9361.00151
- The paper
- Rivera‐Batiz, F. L. (2002). Democracy, Governance, and Economic Growth: Theory and Evidence. Review of Development Economics. https://doi.org/10.1111/1467-9361.00151
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
