John F. Helliwell
Empirical Linkages Between Democracy and Economic Growth
using crosssectional pooled data 125 countries period 1960 1985 article evaluates twoway linkages democracy economic growth effects income democracy found robust positive effects several measures democracy personal freedoms growth assessed comparative growth framework growth gdp per adult depends negatively initial income levels implied convergence hypothesis positively rates investment physical human capital adjusting simultaneous determination income democracy makes estimated partial effect democracy subsequent economic growth negative insignificant nonsignificant negative effect case counterbalanced positive indirect effect democracy exerts growth via education investment general result growth analysis still possible identify systematic net effects democracy subsequent economic growth