October 20, 2018
hISTORY eNDED IN '76:
Democracy's Unique Advantage in Promoting Economic Growth: Quantitative Evidence for a New Institutional Theory (Rui Tang Shiping Tang, 10 October 2018, International Review for Social Sciences)
Bringing together the classic defense of liberty and democracy, the political economy of hierarchy, endogenous growth theory, and the new institutional economics on growth, we propose a new institutional theory that identifies democracy's unique advantage in prompting economic growth. We contend that the channel of liberty‐to‐innovation is the most critical channel in which democracy holds a unique advantage over autocracy in promoting growth, especially during the stage of growth via innovation. Our theory thus predicts that democracy holds a positive but indirect effect upon growth via the channel of liberty‐to‐innovation, conditioned by the level of economic development.
Posted by Orrin Judd at October 20, 2018 8:34 AM