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Effects of Economic Growth on Democratization in Transition Economies: A Panel Data Approach

Year 2009, Volume: 9 Issue: 9, - , 01.06.2009

Abstract

Democratization had occurred in a long historical process and had developed itself by having different evolutions. It had been claimed that democratization was based on some social conditions until 1959. However, Lipset (1959) suggested that democracy is based not only on social conditions but also on economic growth. Relationships between economic growth and democratization have been a significant issue for many studies particularly in the last three decades. Within this study, the effects of economic growth on democratization have been investigated by using a panel data set for 1993-2005 periods for 24 transition economies. According to the estimating results, democratization process is positively affected by income level. Whilst democratization level is negatively affected by increasing population, the effect of inflation is ambiguous.

References

  • Acemoglu, D., S. Johnson, J.A. Robinson, P. Yared (2005), “Income and Democracy”, NBER Working Paper Series, 11205, 1-64.
  • Alesina, A., S. Özler, N. Roubini, P. Swagel (1996), “Political Instability and Economic Growth”, Journal of Economic Growth, 1, 189-211.
  • Alfaro, J.A. (2002), “Economic Development and Democracy: Can Modernization Theory Be Upheld in Central America?”, 2. Revista de Ciencias Economicas, Universidad de Costa Rica, XX (1), <http://www.geocities.com/jaacun/Democracy.PDF>, (22.06.2007).
  • Arat, Z.F. (1988), “Democracy and Economic Development: Modernization Theory Revisite”, Comparative Politics, 21 (1), 21–36.
  • Arat, Z.F. (1991), Democracy and Human Rights in Developing Countries, Boulder, CO: Lynne Rienner.
  • Baltaghi, B.H. (2005), Econometric Analysis of Panel Data, John Wiley and Sons.
  • Banks, A.S. (1994), Cross-Polity Time-Series Data Archive, Binghamton NY: State University of New York.
  • Barro, R.J. (1999), “Determinants of Democracy”, Journal of Political Economy, 107 (6), 158–83.
  • Beetham, D. (1994), Defining and Measuring Democracy, London.
  • Bernhagen, P. (2001), Economic Development and Democracy in Latin America: A Replication and Extension, <http://www.tcd.ie/Political_Science/P.Bernhagen/DemDevExt.pdf>, (12.10.2006).
  • Boix, C., S.C. Stokes (2003), “Endogenous Democratization”, World Politics, 55, 517-49.
  • Bollen, K.A. (1979), “Political Democracy and the Timing of Development”, American Socialical Review, 44, 572–87.
  • Bollen, K.A. (1993), “Liberal Democracy: Validity and Method Factors in Cross-National Measures”, American Journal of Political Science, 37, 1207-1230.
  • Burkhart, R.E., M.S. Lewis-Beck (1994), “Comparative Democracy: The Economic Development Thesis”, American Political Science Review, 88 (4), 903–10.
  • Coleman, J.S. (1960), “Conclusion: The Political Systems of The Developing Area”, in Almond, G.A., Coleman, J.S., eds., The Politics of Developing Areas, Princeton: Princeton University Press, 532-81’den aktaran: Arat, Z.F. (1988), “Democracy and Development: Modernization Theory Revisited”, Comparative Politics, 21 (1), 22.
  • Coppedge, M., H. Wolfgang (1990), “Measuring Polyarchy”, Studies on Comparative Internatioal Development, 25, 51-72.
  • Cutright, P. (1963), “National Political Development: Measurement and Analysis”, American Sociological Review, 28, 253–64.
  • Dahl, R.A. (1971), Polyarchy: Participation and Opposition, New Haven: Yale University Press.
  • Epstein, D.L. (2006), “Democratic Transitions”, American Journal of Political Science, 50 (3), 1–33.
  • Freedom House (2007), Freedom in the World, <http://www.freedomhouse.org/template.cfm?page=351&ara_page=333&year=2007>, (08.02.2007).
  • Freedom House (2006 & 2008), Freedom in the World Country Ratings (1972 – 2006), <http://www.freedomhouse.org/uploads/fiw/FWAllScores.xls>, (25.09.2006).
  • Gasiorowski, M.J. (1996), “An Overview of the Political Regime Change Dataset”, Comparative Political Studies, 29, 469-483.
  • Greene, W.H. (2002), Econometric Analysis, Prentice Hall.
  • Gurr, T.R. (1974), “Persistence and Change in Political Systems, 1800-1971”, American Political Science Review, 74 (December), 1482-1504.
  • Gurr, T.R. (1990), Polity II: Political Structures and Regime Change, 1800–1986, Ann Arbor: ICPSR.
  • Hadenius, A. (1992), Democracy and Development, Cambridge.
  • Helliwell, J.F. (1992), “Empirical Linkages Between Democracy and Economic Growth”, NBER Working Paper, No: 4066.
  • Helliwell, J.F. (1994), “Empirical Linkages Between Democracy and Economic Growth”, British Journal of Political Science, 24, 225–48.
  • Huntington, S. (1991), The Third Wave: Democratization in the Late Twentieth Century, University of Oklahoma Press.
  • Inglehart, R. (1990), Culture Shift in Advanced Industrial Society, Princeton: Princeton University Press’den aktaran Granato, J., Inglehart, R.,Leblang, D. (1996), “Culturel Values, Stable Democracy, and Economic Development: A Reply”, American Journal of Political Science, 40 (3), 682.
  • Inkeles, A. (1991), On Measuring Democracy, New Brunswick, NJ: Transaction Publishing.
  • Jackman, R.W.(1973), “On the Relation of Economic Development to Democratic Performance”, American Journal of Political Science, 17( 3), 611–21.
  • Jaggers, K., T.R. Gurr (1995), “Tracking Democracies Third Wave With the Polity III Data”, Journal of Peace Research, 32, 469-484.
  • Kim, C.L. (1971), “Socio-Economic Development and Political Democracy in Japanese Prefectures”, The American Political Science Review, 65 (1), 184–6.
  • Landman, T. (1999), “Economic Development and Democracy: The View from Latin America”, Political Studies, XLVII, 607–26.
  • Lipset, S.M. (1959), “Some Social Requisites of Democracy: Economic Development and Political Legitimacy”, American Political Science Review, 53, 69–105.
  • Maier, H. (1985), Zur neueren Geschichte des Demokratiebegriff, in: Mnier, H., Pölitische Wissenschaft in Deutscland, München/Zürich, 189-218’den aktaran Schmidt, M. G. (2001), Demokrasi Kuramlarına Giriş, Çev. Köktaş, M.E., Ankara: Vadi Yayınları, 256.
  • Marshall, M.G., K. Jaggers (2002), Polity IV Project: Political Regime Characteristics and Transitions, 1800 – 2002: Dataset Users’ Manual, Maryland: University of Maryland, <http://www.cidcm.umd.edu/inscr/polity>, (18.09.2006).
  • Monshipouri, M., A. Samuel (1995), “Development and Democracy in Pakistan: Tenuous or Plausible Nexus?”, Asian Survey, 35 (11), 973–89.
  • Muller, E.N. (1995), “Economic Determinants of Democracy”, American Sociological Review, 60 (6), 966–82.
  • Neubauer, D.E. (1967), “Some Conditions of Democracy”, The American Political Science Review, 6 (4), 1002–9.
  • Poe, S.C., C.N. Tate (1994), “Repression of Human Rights to Personal Integrity in the 1980s: A Global Analysis”, American Political Science Review, 88, 853-72.
  • Polity IV Project (2006), Dataset Users’ Manual, <htpp://www.cidcm.umd.edu/polity/data/showlic.htm>, (19.06.2006).
  • Przeworski, A., F. Limongi (1997), “Modernization: Theories and Facts”, World Politics, 49 (2), 155-83.
  • Schmidt, M.G. (2001), Demokrasi Kuramlarına Giriş, Çev. Köktaş, M.E., Ankara: Vadi Yayınları.
  • Sussman, L.R. (1982), The Continuing Struggle for Freedom of Information. In Raymond D. Gastil (Ed.), Freedom in the World, 1982 (pp. 101-119). Westport, CT: Greenwood.
  • Türkkan, E. (1996), Ekonomi ve Demokrasi, Ankara: Turhan Kitabevi.
  • Vanhanen, T. (1997), Prospects of Democracy: A Study of 172 Countries, London and New York.
  • Yaffee (2003), A Primer for Panel Data Analysis, Social Sciences, Statistics & Mapping.

Effects of Economic Growth on Democratization in Transition Economies: A Panel Data Approach

Year 2009, Volume: 9 Issue: 9, - , 01.06.2009

Abstract

Democratization had occurred in a long historical process and had developed itself by having different evolutions. It had been claimed that democratization was based on some social conditions until 1959. However, Lipset (1959) suggested that democracy is based not only on social conditions but also on economic growth. Relationships between economic growth and democratization have been a significant issue for many studies particularly in the last three decades. Within this study, the effects of economic growth on democratization have been investigated by using a panel data set for 1993-2005 periods for 24 transition economies. According to the estimating results, democratization process is positively affected by income level. Whilst democratization level is negatively affected by increasing population, the effect of inflation is ambiguous.

References

  • Acemoglu, D., S. Johnson, J.A. Robinson, P. Yared (2005), “Income and Democracy”, NBER Working Paper Series, 11205, 1-64.
  • Alesina, A., S. Özler, N. Roubini, P. Swagel (1996), “Political Instability and Economic Growth”, Journal of Economic Growth, 1, 189-211.
  • Alfaro, J.A. (2002), “Economic Development and Democracy: Can Modernization Theory Be Upheld in Central America?”, 2. Revista de Ciencias Economicas, Universidad de Costa Rica, XX (1), <http://www.geocities.com/jaacun/Democracy.PDF>, (22.06.2007).
  • Arat, Z.F. (1988), “Democracy and Economic Development: Modernization Theory Revisite”, Comparative Politics, 21 (1), 21–36.
  • Arat, Z.F. (1991), Democracy and Human Rights in Developing Countries, Boulder, CO: Lynne Rienner.
  • Baltaghi, B.H. (2005), Econometric Analysis of Panel Data, John Wiley and Sons.
  • Banks, A.S. (1994), Cross-Polity Time-Series Data Archive, Binghamton NY: State University of New York.
  • Barro, R.J. (1999), “Determinants of Democracy”, Journal of Political Economy, 107 (6), 158–83.
  • Beetham, D. (1994), Defining and Measuring Democracy, London.
  • Bernhagen, P. (2001), Economic Development and Democracy in Latin America: A Replication and Extension, <http://www.tcd.ie/Political_Science/P.Bernhagen/DemDevExt.pdf>, (12.10.2006).
  • Boix, C., S.C. Stokes (2003), “Endogenous Democratization”, World Politics, 55, 517-49.
  • Bollen, K.A. (1979), “Political Democracy and the Timing of Development”, American Socialical Review, 44, 572–87.
  • Bollen, K.A. (1993), “Liberal Democracy: Validity and Method Factors in Cross-National Measures”, American Journal of Political Science, 37, 1207-1230.
  • Burkhart, R.E., M.S. Lewis-Beck (1994), “Comparative Democracy: The Economic Development Thesis”, American Political Science Review, 88 (4), 903–10.
  • Coleman, J.S. (1960), “Conclusion: The Political Systems of The Developing Area”, in Almond, G.A., Coleman, J.S., eds., The Politics of Developing Areas, Princeton: Princeton University Press, 532-81’den aktaran: Arat, Z.F. (1988), “Democracy and Development: Modernization Theory Revisited”, Comparative Politics, 21 (1), 22.
  • Coppedge, M., H. Wolfgang (1990), “Measuring Polyarchy”, Studies on Comparative Internatioal Development, 25, 51-72.
  • Cutright, P. (1963), “National Political Development: Measurement and Analysis”, American Sociological Review, 28, 253–64.
  • Dahl, R.A. (1971), Polyarchy: Participation and Opposition, New Haven: Yale University Press.
  • Epstein, D.L. (2006), “Democratic Transitions”, American Journal of Political Science, 50 (3), 1–33.
  • Freedom House (2007), Freedom in the World, <http://www.freedomhouse.org/template.cfm?page=351&ara_page=333&year=2007>, (08.02.2007).
  • Freedom House (2006 & 2008), Freedom in the World Country Ratings (1972 – 2006), <http://www.freedomhouse.org/uploads/fiw/FWAllScores.xls>, (25.09.2006).
  • Gasiorowski, M.J. (1996), “An Overview of the Political Regime Change Dataset”, Comparative Political Studies, 29, 469-483.
  • Greene, W.H. (2002), Econometric Analysis, Prentice Hall.
  • Gurr, T.R. (1974), “Persistence and Change in Political Systems, 1800-1971”, American Political Science Review, 74 (December), 1482-1504.
  • Gurr, T.R. (1990), Polity II: Political Structures and Regime Change, 1800–1986, Ann Arbor: ICPSR.
  • Hadenius, A. (1992), Democracy and Development, Cambridge.
  • Helliwell, J.F. (1992), “Empirical Linkages Between Democracy and Economic Growth”, NBER Working Paper, No: 4066.
  • Helliwell, J.F. (1994), “Empirical Linkages Between Democracy and Economic Growth”, British Journal of Political Science, 24, 225–48.
  • Huntington, S. (1991), The Third Wave: Democratization in the Late Twentieth Century, University of Oklahoma Press.
  • Inglehart, R. (1990), Culture Shift in Advanced Industrial Society, Princeton: Princeton University Press’den aktaran Granato, J., Inglehart, R.,Leblang, D. (1996), “Culturel Values, Stable Democracy, and Economic Development: A Reply”, American Journal of Political Science, 40 (3), 682.
  • Inkeles, A. (1991), On Measuring Democracy, New Brunswick, NJ: Transaction Publishing.
  • Jackman, R.W.(1973), “On the Relation of Economic Development to Democratic Performance”, American Journal of Political Science, 17( 3), 611–21.
  • Jaggers, K., T.R. Gurr (1995), “Tracking Democracies Third Wave With the Polity III Data”, Journal of Peace Research, 32, 469-484.
  • Kim, C.L. (1971), “Socio-Economic Development and Political Democracy in Japanese Prefectures”, The American Political Science Review, 65 (1), 184–6.
  • Landman, T. (1999), “Economic Development and Democracy: The View from Latin America”, Political Studies, XLVII, 607–26.
  • Lipset, S.M. (1959), “Some Social Requisites of Democracy: Economic Development and Political Legitimacy”, American Political Science Review, 53, 69–105.
  • Maier, H. (1985), Zur neueren Geschichte des Demokratiebegriff, in: Mnier, H., Pölitische Wissenschaft in Deutscland, München/Zürich, 189-218’den aktaran Schmidt, M. G. (2001), Demokrasi Kuramlarına Giriş, Çev. Köktaş, M.E., Ankara: Vadi Yayınları, 256.
  • Marshall, M.G., K. Jaggers (2002), Polity IV Project: Political Regime Characteristics and Transitions, 1800 – 2002: Dataset Users’ Manual, Maryland: University of Maryland, <http://www.cidcm.umd.edu/inscr/polity>, (18.09.2006).
  • Monshipouri, M., A. Samuel (1995), “Development and Democracy in Pakistan: Tenuous or Plausible Nexus?”, Asian Survey, 35 (11), 973–89.
  • Muller, E.N. (1995), “Economic Determinants of Democracy”, American Sociological Review, 60 (6), 966–82.
  • Neubauer, D.E. (1967), “Some Conditions of Democracy”, The American Political Science Review, 6 (4), 1002–9.
  • Poe, S.C., C.N. Tate (1994), “Repression of Human Rights to Personal Integrity in the 1980s: A Global Analysis”, American Political Science Review, 88, 853-72.
  • Polity IV Project (2006), Dataset Users’ Manual, <htpp://www.cidcm.umd.edu/polity/data/showlic.htm>, (19.06.2006).
  • Przeworski, A., F. Limongi (1997), “Modernization: Theories and Facts”, World Politics, 49 (2), 155-83.
  • Schmidt, M.G. (2001), Demokrasi Kuramlarına Giriş, Çev. Köktaş, M.E., Ankara: Vadi Yayınları.
  • Sussman, L.R. (1982), The Continuing Struggle for Freedom of Information. In Raymond D. Gastil (Ed.), Freedom in the World, 1982 (pp. 101-119). Westport, CT: Greenwood.
  • Türkkan, E. (1996), Ekonomi ve Demokrasi, Ankara: Turhan Kitabevi.
  • Vanhanen, T. (1997), Prospects of Democracy: A Study of 172 Countries, London and New York.
  • Yaffee (2003), A Primer for Panel Data Analysis, Social Sciences, Statistics & Mapping.
There are 49 citations in total.

Details

Primary Language English
Journal Section Articles
Authors

Selim Başar

Ali Güllüce

Şaduman Yıldız

Publication Date June 1, 2009
Submission Date December 12, 2014
Published in Issue Year 2009 Volume: 9 Issue: 9

Cite

APA Başar, S., Güllüce, A., & Yıldız, Ş. (2009). Effects of Economic Growth on Democratization in Transition Economies: A Panel Data Approach. Sosyoekonomi, 9(9). https://doi.org/10.17233/se.49461
AMA Başar S, Güllüce A, Yıldız Ş. Effects of Economic Growth on Democratization in Transition Economies: A Panel Data Approach. Sosyoekonomi. March 2009;9(9). doi:10.17233/se.49461
Chicago Başar, Selim, Ali Güllüce, and Şaduman Yıldız. “Effects of Economic Growth on Democratization in Transition Economies: A Panel Data Approach”. Sosyoekonomi 9, no. 9 (March 2009). https://doi.org/10.17233/se.49461.
EndNote Başar S, Güllüce A, Yıldız Ş (March 1, 2009) Effects of Economic Growth on Democratization in Transition Economies: A Panel Data Approach. Sosyoekonomi 9 9
IEEE S. Başar, A. Güllüce, and Ş. Yıldız, “Effects of Economic Growth on Democratization in Transition Economies: A Panel Data Approach”, Sosyoekonomi, vol. 9, no. 9, 2009, doi: 10.17233/se.49461.
ISNAD Başar, Selim et al. “Effects of Economic Growth on Democratization in Transition Economies: A Panel Data Approach”. Sosyoekonomi 9/9 (March 2009). https://doi.org/10.17233/se.49461.
JAMA Başar S, Güllüce A, Yıldız Ş. Effects of Economic Growth on Democratization in Transition Economies: A Panel Data Approach. Sosyoekonomi. 2009;9. doi:10.17233/se.49461.
MLA Başar, Selim et al. “Effects of Economic Growth on Democratization in Transition Economies: A Panel Data Approach”. Sosyoekonomi, vol. 9, no. 9, 2009, doi:10.17233/se.49461.
Vancouver Başar S, Güllüce A, Yıldız Ş. Effects of Economic Growth on Democratization in Transition Economies: A Panel Data Approach. Sosyoekonomi. 2009;9(9).