Empirical evidence suggests that, contrary to popular perception, democracy has a positive impact on per capita GDP.
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.
In this summary, you will learn
- How previous studies have characterized the relationship between democracy and economic development,
- Why new research suggests that democracy improves per capita GDP, and
- How a transition to democratic rule accelerated GDP growth in Portugal and South Korea.
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.
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