The effect of democracy on income: An analysis of countries affected by coups d’état
Although there is a considerable amount of study which examines the effect of democracy on national income, a limited number of papers analyses the effect of democracy on per capita income. The main objective of this research is to show the effect of democracy level on per capita income amo...
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| Format: | Article |
| Language: | English |
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Economists' Association of Vojvodina
2021-01-01
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| Series: | Panoeconomicus |
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| Online Access: | http://www.doiserbia.nb.rs/img/doi/1452-595X/2021/1452-595X1800018S.pdf |
| Summary: | Although there is a considerable amount of study which examines the effect of
democracy on national income, a limited number of papers analyses the effect
of democracy on per capita income. The main objective of this research is to
show the effect of democracy level on per capita income among new sample, 21
countries which share a similar coup d’état experience in their political
history, to fulfil the gap in the literature. The countries selected are
from different continents and are those most affected by coups. The impact
of two different democracy indicators (Freedom House and Polity IV) on the
per capita income of the countries in the period 2000-2014 is analysed. The
results of the panel data estimation show that, an increase in democracy
level has a positive effect on per capita income for both democracy
indicators. As expected, the effect of the investment, secularism and
education variables on income is positive, whereas the effect of population
growth rate is negative. And trade has no definite effect on per capita
income. |
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| ISSN: | 1452-595X 2217-2386 |