The Relationship between Democracy and Economic Growth in the Path of Sustainable Development
Abstract
:1. Introduction
2. Materials and Methods
Panel VAR Method
3. Results and Discussion
4. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
Appendix A
OECD Countries | Average Democratic Accountability | Average GDP per Capita Growth | Developing Countries | Average Democratic Accountability | Average GDP per Capita Growth |
---|---|---|---|---|---|
Australia | 6 | 1.55 | Albania | 4.26 | 3.27 |
Austria | 5.50 | 1.20 | Algeria | 3.14 | 0.64 |
Belgium | 5.67 | 1.15 | Angola | 2.56 | 0.22 |
Canada | 5.97 | 0.99 | Botswana | 3.68 | 1.52 |
Chile | 4.13 | 2.93 | Brazil | 4.19 | 0.81 |
Czech Republic | 5.33 | 1.73 | Bulgaria | 4.99 | 1.81 |
Denmark | 6 | 1.20 | China | 2.03 | 8.30 |
Estonia | 5.27 | 4.39 | Colombia | 3.95 | 1.61 |
Finland | 6 | 1.25 | Costa Rica | 5.23 | 2.35 |
France | 5.70 | 0.82 | Dominican Republic | 4.43 | 3.08 |
Germany | 5.64 | 1.28 | Ecuador | 3.87 | 0.88 |
Greece | 5.15 | 0.40 | Gabon | 2.77 | −0.62 |
Hungary | 5.33 | 2.28 | Iran | 3.20 | 1.74 |
Iceland | 6 | 1.84 | Iraq | 2.30 | 4.79 |
Ireland | 5.87 | 4.44 | Jordan | 3.40 | 0.29 |
Israel | 5.58 | 1.59 | Malaysia | 4.05 | 3.17 |
Italy | 4.99 | 0.30 | Mexico | 4.86 | 0.73 |
Japan | 5.40 | 0.80 | Mongolia | 3.52 | 2.75 |
Korea | 4.72 | 4.31 | Panama | 4.52 | 3.13 |
Luxembourg | 5.90 | 1.65 | Paraguay | 2.17 | 1.43 |
Netherlands | 6 | 1.42 | Peru | 3.68 | 2.33 |
New Zealand | 5.94 | 1.28 | Romania | 4.81 | 2.77 |
Norway | 6 | 1.40 | South Africa | 4.68 | 0.60 |
Poland | 4.81 | 3.64 | Thailand | 3.65 | 3.12 |
Portugal | 5.43 | 1.17 | Tonga | 1.86 | 1.79 |
Slovak Republic | 5.52 | 3.59 | Tunisia | 2.55 | 2.09 |
Slovenia | 5.03 | 2.27 | Turkey | 4.37 | 3.01 |
Spain | 5.62 | 1.04 | |||
Sweden | 6 | 1.35 | |||
Switzerland | 6 | 0.70 | |||
United Kingdom | 5.86 | 0.98 | |||
United States | 5.93 | 1.33 |
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Stat. | OECD Countries | Selected Developing Countries | |||||||
---|---|---|---|---|---|---|---|---|---|
Variable | Mean | Max | Min | Standard Deviation | Mean | Max | Min | Standard Deviation | |
Growth in real per capita GDP | 1.76 | 4.44 | 0.3 | 1.13 | 2.13 | 8.3 | −0.62 | 1.7 | |
Democratic Accountability | 5.57 | 6 | 4.1 | 0.46 | 3.66 | 5.23 | 1.86 | 0.95 |
Variable | OECD Countries | Developing Countries | ||
---|---|---|---|---|
Test Stat. | p-Value | Test Stat. | p-Value | |
Growth in real per capita GDP | −7.591 | 0 | −8.97 | 0 |
Democracy | −2.051 | 0.02 | −2.09 | 0.018 |
MAIC Statistic | ||
---|---|---|
Lag | OECD Countries | Developing Countries |
1 | 1.3279 | 6.6524 |
2 | −3.4063 | −5.8675 |
3 | −2.8844 | −4.8792 |
Economic Growth Equation | ||||
---|---|---|---|---|
Variable | OECD countries | Developing countries | ||
Coefficient | p-value | Coefficient | p-value | |
The first lag of real per capita GDP | 0.494 | 0 | 0.167 | 0.276 |
The second lag of real per capita GDP | −0.115 | 0.106 | 0.039 | 0.619 |
The first lag of democracy | −3.903 | 0.033 | 1.455 | 0.365 |
The second lag of democracy | −0.667 | 0.435 | 0.38 | 0.5 |
Democracy equation | ||||
Variable | OECD countries | Developing countries | ||
Coefficient | p-value | Coefficient | p-value | |
The first lag of democracy | 1.159 | 0 | 1.09 | 0 |
The second lag of democracy | −0.144 | 0.007 | −0.23 | 0 |
The first lag of real per capita GDP | 0.029 | 0.336 | 0.01 | 0.063 |
The second lag of real per capita GDP | 0.026 | 0.459 | −0.005 | 0.107 |
J stat. | p-value | J stat. | p-value | |
Test of exogenism of instruments (Hansen test) | 12.59 | 0.13 | 12.3 | 0.14 |
OECD Countries | ||
---|---|---|
Null hypothesis | χ2stat. | p-value |
Democracy is not cause of economic growth | 10.69 | 0.005 |
Economic growth is not cause of democracy | 1.62 | 0.445 |
Developing countries | ||
Null hypothesis | χ2stat. | p-value |
Democracy is not cause of economic growth | 1.665 | 0.437 |
Economic growth is not cause of democracy | 4.24 | 0.12 |
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Mohammadi, H.; Boccia, F.; Tohidi, A. The Relationship between Democracy and Economic Growth in the Path of Sustainable Development. Sustainability 2023, 15, 9607. https://doi.org/10.3390/su15129607
Mohammadi H, Boccia F, Tohidi A. The Relationship between Democracy and Economic Growth in the Path of Sustainable Development. Sustainability. 2023; 15(12):9607. https://doi.org/10.3390/su15129607
Chicago/Turabian StyleMohammadi, Hosein, Flavio Boccia, and Amirhossein Tohidi. 2023. "The Relationship between Democracy and Economic Growth in the Path of Sustainable Development" Sustainability 15, no. 12: 9607. https://doi.org/10.3390/su15129607
APA StyleMohammadi, H., Boccia, F., & Tohidi, A. (2023). The Relationship between Democracy and Economic Growth in the Path of Sustainable Development. Sustainability, 15(12), 9607. https://doi.org/10.3390/su15129607