Tesco
Democracy Does Cause Growth
Report

Democracy Does Cause Growth

Daron Acemoglu, Suresh Naidu, Pascual Restrepo and James A. Robinson
NBER, 2015
Get the Report

Read or listen offline

auto-generated audio
  • 0.5×
  • 0.75×
  • 1×
  • 1.25×
  • 1.5×
  • 1.75×
1×
auto-generated audio

Editorial Rating

8

Qualities

  • Innovative
  • Scientific

Recommendation

In the wake of China’s emergence as an economic superpower, an increasing number of observers have called into question the role of democracy in enabling economic expansion. In fact, some believe it to be an impediment. The empirical evidence in this groundbreaking report from economists Daron Acemoglu, Suresh Naidu, Pascual Restrepo and James A. Robinson suggests that democracy has a positive and measurable impact on per capita GDP and that it doesn’t appear to hinder growth in lesser-developed countries. getAbstract recommends this scholarly study’s findings to executives and investors of all political stripes.

Take-Aways

  • The relationship of democracy to economic growth is a long-standing subject of academic scrutiny and public debate.
  • A “democracy index” of 183 countries between 1960 and 2010 includes factors such as the presence of free and fair elections and political checks and balances, as well as a measure of “the inclusiveness of the political process.”
  • The evidence suggests that democracy has a positive impact on per capita GDP and that it doesn’t appear to hinder growth in lesser-developed countries.

About the Authors

Daron Acemoglu is an economics professor at MIT, Suresh Naidu is an assistant professor of economics at Columbia University, Pascual Restrepo is a PhD candidate at MIT and James A. Robinson is a professor of public policy at the University of Chicago.

Comment on this summary or Start Discussion