Entrenched Autocracy or New Democracy: Which Is Better for Business?

Nur-tegin, Kanybek

doi:10.1111/kykl.12052

Cited by 7 publications

(5 citation statements)

References 32 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Weede () argues that conflicts and revolutionary change affect property rights, individual freedom, and subsequently growth depending on various conditions. Nur‐tegin () finds that regime changes are subject to political turmoil that often reduce growth in the short term, but can lead to stronger growth in the long term especially if the level of democratization has increased. Cervellati and Sunde () show that peaceful transitions have a significant effect on growth compared to transitions that induce civil conflict.…”

Section: Related Literaturementioning

confidence: 99%

The Effects of Military Occupation on Growth

Vishwasrao¹,

Schneider²,

Chiang³

2018

Kyklos

View full text Add to dashboard Cite

Summary A substantial literature exists on the effects of military expenditures on economic growth, yet no study has analyzed the effects of military occupation other than in anecdotal cases. This paper uses a panel of 214 countries from 1950 to 2013 to study how economic growth is impacted by different forms of military occupation. Transformative occupations aim to establish institutions to promote stability once the occupation ends, while subdual occupations are more malevolent in their objectives. Our results show that transformative occupations produce positive growth in occupied countries after the occupation period concludes. Separating these effects into the short run and long run, we find that while countries subject to a subdual occupation experience a short‐run increase in growth at the end of the occupation, countries with transformative occupation experience long‐run increases in growth. These findings are robust to the inclusion of traditional drivers of growth. Policy implications suggest that regional conflicts that are solved using military intervention may have lasting effects on growth as long as the intentions of the occupying force are transformative in nature.

show abstract

Section: Related Literaturementioning

confidence: 99%

The Effects of Military Occupation on Growth

Vishwasrao¹,

Schneider²,

Chiang³

2018

Kyklos

View full text Add to dashboard Cite

show abstract

“…A long literature beginning with Stigler's (1971) seminal contribution documents how actual regulation often favours market incumbents and the particular technology and practices they use. Problems of regulatory capture may be more severe in regimes without democratic accountability, but can be similarly prevalent in unstable democracies (Dorsch et al 2014;Nur-tegin 2014). Problems of regulatory capture may be more severe in regimes without democratic accountability, but can be similarly prevalent in unstable democracies (Dorsch et al 2014;Nur-tegin 2014).…”

Section: Positive Environmental Effects Of Economic Freedommentioning

confidence: 99%

“…Effectively enforced regulation can thus, when incumbent special interests affect the structure of it, reduce the speed and degree of technology transfers and the competitive pressure incumbents face to reduce their resource use. Problems of regulatory capture may be more severe in regimes without democratic accountability, but can be similarly prevalent in unstable democracies (Dorsch et al 2014;Nur-tegin 2014). Ideally, government could therefore improve the environmental performance of the economy through both direct control and through regulation and legislation, but standard public choice arguments imply that adverse consequences are more often likely to be the case.…”

Section: Positive Environmental Effects Of Economic Freedommentioning

confidence: 99%

Do Liberalising Reforms Harm the Environment? Evidence from the Post‐Communist Transition

Bjørnskov

2018

Economic Affairs

View full text Add to dashboard Cite

Whether or not economic freedom and capitalism are associated with better or worse environmental performance gives rise to a heated political debate. This article sheds empirical light on the debate by examining the association between economic and political freedom on the one hand and environmental performance on the other. Estimating the effects of economic freedom and democracy on four environmental measures since 1993 across 27 formerly communist countries shows that liberalising the size of the public sector is associated with less environmental damage, although only in autocracies. The consequences of regulatory activity, market openness and the rule of law are more mixed.JEL codes: O10, Z10.

show abstract

“…Second, I drop GTF (global technology frontier growth), since including it shaves several years of the sample. Third, although democracy may indirectly enhance growth through stabilizing polities and institutions (Feng ), I control for Ln(regime duration + 1) (RDU), using Polity IV data: Political instability likely affects growth particularly through affecting the investment climate (Alesina et al ; Nur‐tegin ). Hence, the baseline model is:

E G R_{i, t} = β_{0} + β_{PI} P I_{i, t - 5} + β_{G D P} G D P_{i, t - 5} + β_{POP} P O P_{i, t - 5} + β_{R D U} R D U_{i, t - 5} + β_{E F R} E F R_{i, t - 5} + true \sum ((), β_{R E G_{j}} R E G_{j, i, t - 5}) + true \sum ((), β_{D E C_{k}} D E C_{k, i, t - 5}) + ε_{i, t}

…”

Section: Testing Additional Implications and Alternative Explanationsmentioning

confidence: 99%

Why Democracies Outgrow Autocracies in the Long Run: Civil Liberties, Information Flows and Technological Change

Knutsen

2015

Kyklos

View full text Add to dashboard Cite

Summary This paper argues that democracy enhances technological change, the most important determinant of long‐term economic growth. It first presents an argument on how and why dictators restrict civil liberties and diffusion of information to survive in office, even if this reduces their personal consumption. The argument predicts that autocracies have slower technological change than democracies, which in turn impairs GDP per capita growth rates. These and other implications from the argument are tested empirically, and so are implications from alternative explanations on the association between democracy and technological change. Drawing on an extensive global dataset, with some time series going back to the early 19th century, the paper reports robust evidence that democracy increases not only technology‐induced growth but also net economic growth rates. Notably, the results hold when accounting for the endogeneity of democracy, country‐fixed effects, and sample‐selection bias.

show abstract

Entrenched Autocracy or New Democracy: Which Is Better for Business?

Cited by 7 publications

References 32 publications

The Effects of Military Occupation on Growth

The Effects of Military Occupation on Growth

Do Liberalising Reforms Harm the Environment? Evidence from the Post‐Communist Transition

Why Democracies Outgrow Autocracies in the Long Run: Civil Liberties, Information Flows and Technological Change

Contact Info

Product

Resources

About