Author:
Michal Mádr
michal.madr@mendelu.cz
https://orcid.org/0000-0002-4031-531X
Michal Mádr
Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno , Czech Republic
Search for other papers by Michal Mádr in
Current site
Google Scholar
PubMed
Search for other papers by Michal Mádr in
Current site
Google Scholar
PubMed
Abstract
The aim of the paper is to verify whether there has been a causal relationship between economic performance and the quality of political environment in the last 200 years. Mainly, the paper explores the bi-directorial causality for the period of 1821–2016. To attain the aim, the paper uses Granger causality test. The differences between the individual regions (Europe, Latin America and former British colonies) are taken into consideration. Economic performance is expressed as annual growth rate of GDP per capita (taken from Maddison Project Database); the quality of political environment is associated with the Electoral Democracy Index and the Liberal Democracy Index (from the V-Dem Project).
The paper offers three findings. Firstly, the results indicate that a statistically significant relationship between economic performance and political development was identified for the researched period. Secondly, bi-directorial causality was peculiar to the European countries, whereas the linkage was not identified within other regions. Thirdly, the results for the sub-periods confirm the previous conclusions with two additions. The quality of political environment and economic performance did not interact with each other in the period of 1821–1870 across all three regions, while in the period after World War II, bi-directorial causal relationship could also exist in the Latin American economies.
ProCite
RefWorks
Reference Manager
BibTeX
Zotero
EndNote
-
Abrigo, M. R. – Love, I. (2016): Estimation of Panel Vector Autoregression in Stata. The Stata Journal, 16(3): 778–804.
-
Acemoglu, D. – Johnson, S. – Robinson, J. A. – Yared, P. (2008): Income and Democracy. American Economic Review, 98(3): 808–842.
-
Acemoglu, D. – Johnson, S. – Robinson, J. A. – Yared, P. (2009): Reevaluating the Modernization Hypothesis. Journal of Monetary Economics, 56(8): 1043–1058.
-
Acemoglu, D. – Robinson, J. A. (2000): Why Did the West Extend the Franchise? Democracy, Inequality, and Growth in Historical Perspective. The Quarterly Journal of Economics, 115(4): 1167–1199.
-
Acemoglu, D. – Robinson, J. A. (2005): Economic Origins of Dictatorship and Democracy. Cambridge: Cambridge University Press.
-
Aisen, A. – Veiga, F. J. (2013): How Does Political Instability Affect Economic Growth? European Journal of Political Economy, 29(1): 151–167.
-
Alfano, M. R. – Baraldi, A. L. (2016): Democracy, Political Competition and Economic Growth. Journal of International Development, 28(8): 1199–1219.
-
Almeida, H. – Ferreira, D. (2002): Democracy and the Variability of Economic Performance. Economics & Politics, 14(3): 225–257.
-
Barro, R. J. (1999): Determinants of Democracy. Journal of Political Economy, 107(6): 158–183.
-
Bednar, M. (2019): Political Budget Cycles in the European Union: New Evidence of Fragmentation between Countries. Acta Oeconomica, 69(4): 523–547.
-
Bolt, J. – Inklaar, R. – De Jong, H. – Van Zanden, J. L. (2018): Rebasing ‘Maddison’: New Income Comparisons and the Shape of Long-Run Economic Development. Maddison Project, Working Paper No. 10, University of Groningen.
-
Broderstad, T. S. (2018): A Meta-Analysis of Income and Democracy. Democratization, 25(2): 293–311.
-
Cervellati, M. – Jung, F. – Sunde, U. – Vischer, T. (2014): Income and Democracy: Comment. American Economic Review, 104(2): 707–719.
-
Colagrossi, M. – Rossignoli, D. – Maggioni, M. A. (2020): Does Democracy Cause Growth? A Meta-Analysis (of 2000 Regressions). European Journal of Political Economy, 61: 101824.
-
Comeau, L. (2003): Democracy and Growth: A Relationship Revisited. Eastern Economic Journal, 29(1): 1–21.
-
Coppedge, M. – Gerring, J. – Knutsen, C. H. – Lindberg, S. I. … – Ziblatt. D. (2019): V-Dem [Country-Year/Country-Date] Dataset V9. Varieties of Democracy (V-Dem) Project. https://doi.org/10.23696/vdemcy19.
-
Coppedge, M. – Lindberg, S. – Skaaning, S. E. – Teorell, J. (2016): Measuring High Level Democratic Principles Using the V-Dem Data. International Political Science Review, 37(5): 580-593.
-
Dahl, R. A. (1989): Democracy and Its Critics. New Haven: Yale University Press.
-
Doorenspleet, R. (2004): The Structural Context of Recent Transitions to Democracy. European Journal of Political Research, 43(3): 309–335.
-
Dorsch, M. T. – Maarek, P. (2020): Economic Downturns, Inequality, and Democratic Improvements. European Journal of Political Economy, 62(4): 101856.
-
Doucouliagos, H. – Ulubaşoğlu, M. A. (2008): Democracy and Economic Growth: A Meta-Analysis. American Journal of Political Science, 52(1): 61–83.
-
Dumitrescu, E. I. – Hurlin, C. (2012): Testing for Granger Non-Causality in Heterogeneous Panels. Economic Modelling, 29(4): 1450–1460.
-
Emirmahmutoglu, F. – Kose, N. (2011): Testing for Granger Causality in Heterogeneous Mixed Panels. Economic Modelling, 28(3): 870–876.
-
Feng, Y. (1995): Regime, Polity, and Economic Growth: The Latin American Experience. Growth and Change, 26(1): 77–104.
-
Gasiorowski, M. (1995): Economic Crisis and Political Regime Change: An Event History Analysis. American Political Science Review, 89(4): 882–897.
-
Gerring, J. – Bond, P. – Barndt, W. T. – Moreno, C. (2005): Democracy and Economic Growth: A Historical Perspective. World Politics, 57(3): 323–364.
-
Hadenius, A. – Teorell, J. (2005): Cultural and Economic Prerequisites of Democracy: Reassessing Recent Evidence. Studies in Comparative International Development, 39(4): 87–106.
-
Heo, U. – Tan, A. C. (2001): Democracy and Economic Growth: A Causal Analysis. Comparative Politics, 33(4): 463–473.
-
Huntington, S. (1993): The Third Wave: Democratization in the Late Twentieth Century. Norman: University of Oklahoma Press.
-
Jong-A-Pin, R. (2009): On the Measurement of Political Instability and Its Impact on Economic Growth. European Journal of Political Economy, 25(1): 15–29.
-
Jung, F. – Sunde, U. (2014): Income, Inequality, and the Stability of Democracy – Another Look at the Lipset Hypothesis. European Journal of Political Economy, 35(3): 52–74.
-
Kennedy, R. (2010): The Contradiction of Modernization: A Conditional Model of Endogenous Democratization. The Journal of Politics, 72(3): 785–798.
-
Knutsen, C. H. (2012): Democracy and Economic Growth: A Survey of Arguments and Results. International Area Studies Review, 15(4): 393–415.
-
Knutsen, C. H. (2014): Income Growth and Revolutions. Social Science Quarterly, 95(4): 920–937.
-
Krieckhaus, J. (2004): The Regime Debate Revisited: A Sensitivity Analysis of Democracy’s Economic Effect. British Journal of Political Science, 34(4): 635–655.
-
Krieckhaus, J. (2006): Democracy and Economic Growth: How Regional Context Influences Regime Effects. British Journal of Political Science, 36(2): 317–340.
-
Landman, T. (1999): Economic Development and Democracy: The View from Latin America. Political Studies, 47(4): 607–626.
-
Lipset, S. M. (1959): Some Social Requisites of Democracy: Economic Development and Political Legitimacy. The American Political Science Review, 53(1): 69–105.
-
Loayza, N. – Rigolini, J. – Llorente, G. (2012): Do Middle Classes Bring About Institutional Reforms? Economics Letters, 116(3): 440–444.
-
Lopez, L. – Weber, S . (2017): Testing for Granger Causality in Panel Data. The Stata Journal, 17(4): 972–984.
-
Madsen, J. B. – Raschky, P. A. – Skali, A. (2015): Does Democracy Drive Income in the World, 1500–2000? European Economic Review, 78: 175–195.
-
Marshall, M. G. – Gurr, T. R. – Jaggers, K. (2017): Political Regime Characteristics and Transitions, 1800–2016. Polity IV Project. Http://www.systemicpeace.org/.
-
Murphy, R. H. – O’Reilly, C. (2019): Applying Panel Vector Autoregression to Institutions, Human Capital, and Output. Empirical Economics, 57(5): 1633–1652.
-
Murtin, F. – Wacziarg, R. (2014): The Democratic Transition. Journal of Economic Growth, 19(2): 141–181.
-
North, D. C. (1993): The Paradox of the West. Economics Working Paper Archive, No. 9309005, Washington: University in St. Louis.
-
Papaioannou, E. – Siourounis, G. (2008): Democratisation and Growth. The Economic Journal, 118(532): 1520–1551.
-
Pemstein, D. – Marquardt, K. L. – Tzelgov, E. – Wang, Y. … – Römer, J. (2019): The V-Dem Measurement Model: Latent Variable Analysis for Cross-National and Cross-Temporal Expert-Coded Data. V-Dem Working Paper, No. 21, University of Gothenburg.
-
Persson, T. – Tabellini, G. (2006): Democracy and Development: The Devil in the Details. American Economic Review, 96(2): 319–324.
-
Persson, T. – Tabellini, G. (2009): The Growth Effect of Democracy: Is It Heterogenous and How Can It Be Estimated? In: Helpman, E. (ed.): Institutions and Economic Performance. Cambridge, MA: Harvard University Press, pp. 544–586.
-
Pinho, C. – Madaleno, M. (2009): Political Regimes and Economic Growth. Revista Enfoques, 7(11): 471–490.
-
Przeworski, A. – Limongi, F. (1993): Political Regimes and Economic Growth. The Journal of Economic Perspectives, 7(3): 51–69.
-
Schumpeter, J. A. (1942): Socialism, Capitalism and Democracy. Manhattan: Harper and Brothers.
-
Tang, M. (2008): Examining the Lagged Effect of Economic Development on Political Democracy: A Panel-VAR Model. Democratisation, 15(1): 106-122.
-
Yanovskiy, K. – Shulgin, S. (2013): Institutions, Democracy and Growth in the Very Long Run. Acta Oeconomica, 63(4): 493–510.
-
Zak, P. J. – Feng, Y. (2003): A Dynamic Theory of the Transition to Democracy. Journal of Economic Behavior & Organization, 52(1): 1–25.
-
Zakaria, F. (2003): The Future of Freedom: Illiberal Democracy at Home and Abroad. New York: W.W. Norton Company.
Corvinus University of Budapest
Department of Economics
Fővám tér 8 Budapest, H-1093, Hungary
E-mail: vanyai.judit@krtk.hu
Indexing and Abstracting Services:
- CABELLS Journalytics
- EconLit
- Elsevier GEO Abstracts
- GEOBASE
- Index Copernicus
- International Bibliographies IBZ and IBR
- JEL
- Referativnyi Zhurnal
- RePEc
- SCOPUS
- Social Science Citation Index
| 2023 | |
|---|---|
| Web of Science | |
| Journal Impact Factor | 0.7 |
| Rank by Impact Factor | Q3 (Economics) |
| Journal Citation Indicator | 0.23 |
| Scopus | |
| CiteScore | 1.4 |
| CiteScore rank | Q3 (Economics and Econometrics) |
| SNIP | 0.385 |
| Scimago | |
| SJR index | 0.218 |
| SJR Q rank | Q4 |
| Acta Oeconomica | |
|---|---|
| Publication Model | Hybrid |
| Submission Fee | none |
| Article Processing Charge | 900 EUR/article |
| Printed Color Illustrations | 40 EUR (or 10 000 HUF) + VAT / piece |
| Regional discounts on country of the funding agency | World Bank Lower-middle-income economies: 50% World Bank Low-income economies: 100% |
| Further Discounts | Editorial Board / Advisory Board members: 50% Corresponding authors, affiliated to an EISZ member institution subscribing to the journal package of Akadémiai Kiadó: 100% |
| Subscription fee 2025 | Online subsscription: 700 EUR / 768 USD Print + online subscription: 820 EUR / 900 USD |
| Subscription Information | Online subscribers are entitled access to all back issues published by Akadémiai Kiadó for each title for the duration of the subscription, as well as Online First content for the subscribed content. |
| Purchase per Title | Individual articles are sold on the displayed price. |
| Acta Oeconomica | |
|---|---|
| Language | English |
| Size | B5 |
| Year of Foundation |
1966 |
| Volumes per Year |
1 |
| Issues per Year |
4 |
| Founder | Magyar Tudományos Akadémia |
| Founder's Address |
H-1051 Budapest, Hungary, Széchenyi István tér 9. |
| Publisher | Akadémiai Kiadó |
| Publisher's Address |
H-1117 Budapest, Hungary 1516 Budapest, PO Box 245. |
| Responsible Publisher |
Chief Executive Officer, Akadémiai Kiadó |
| ISSN | 0001-6373 (Print) |
| ISSN | 1588-2659 (Online) |
Monthly Content Usage
| Abstract Views | Full Text Views | PDF Downloads | |
|---|---|---|---|
| Mar 2024 | 32 | 0 | 0 |
| Apr 2024 | 18 | 0 | 0 |
| May 2024 | 20 | 1 | 1 |
| Jun 2024 | 17 | 0 | 0 |
| Jul 2024 | 74 | 0 | 0 |
| Aug 2024 | 50 | 0 | 0 |
| Sep 2024 | 3 | 0 | 0 |
Author:
Author:
The system paradigm revisited
Clarification and additions in the light of experiences in the post-socialist region
Author:
Author:
Author:
Copyright Akadémiai Kiadó AKJournals is the trademark of Akadémiai Kiadó's journal publishing business branch.
Powered by PubFactory