Democracy and economic growth in Sub-Saharan Africa: A panel data approach
This paper studies the link between democracy and economic development for 28 countries of Sub-Saharan Africa for the period 1980-2005 in a panel data framework. A democracy index constructed from the Freedom House indices. A variety of panel data unit root and cointegration tests are applied. The v...
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| Format: | Journal Article |
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Physica-Verlag GmbH und Co.
2013
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| Online Access: | http://hdl.handle.net/20.500.11937/50864 |
| _version_ | 1848758554731741184 |
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| author | Jaunky, Vishal |
| author_facet | Jaunky, Vishal |
| author_sort | Jaunky, Vishal |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This paper studies the link between democracy and economic development for 28 countries of Sub-Saharan Africa for the period 1980-2005 in a panel data framework. A democracy index constructed from the Freedom House indices. A variety of panel data unit root and cointegration tests are applied. The variables are found to be integrated of order one and cointegrated. The Blundell-Bond system generalized methods-of-moments is employed to conduct a panel error-correction mechanism based causality test within a vector autoregressive structure. Economic growth is found to cause democracy in the short-run, while bidirectionality is uncovered in the long-run. In addition, the long-run coefficients are estimated through the panel fully modified ordinary least squares and dynamic ordinary least squares methods. Democracy has a positive impact on GDP and vice versa. These results lend support to the virtuous cycle hypothesis. © 2012 Springer-Verlag. |
| first_indexed | 2025-11-14T09:45:50Z |
| format | Journal Article |
| id | curtin-20.500.11937-50864 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T09:45:50Z |
| publishDate | 2013 |
| publisher | Physica-Verlag GmbH und Co. |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-508642017-09-13T15:34:26Z Democracy and economic growth in Sub-Saharan Africa: A panel data approach Jaunky, Vishal This paper studies the link between democracy and economic development for 28 countries of Sub-Saharan Africa for the period 1980-2005 in a panel data framework. A democracy index constructed from the Freedom House indices. A variety of panel data unit root and cointegration tests are applied. The variables are found to be integrated of order one and cointegrated. The Blundell-Bond system generalized methods-of-moments is employed to conduct a panel error-correction mechanism based causality test within a vector autoregressive structure. Economic growth is found to cause democracy in the short-run, while bidirectionality is uncovered in the long-run. In addition, the long-run coefficients are estimated through the panel fully modified ordinary least squares and dynamic ordinary least squares methods. Democracy has a positive impact on GDP and vice versa. These results lend support to the virtuous cycle hypothesis. © 2012 Springer-Verlag. 2013 Journal Article http://hdl.handle.net/20.500.11937/50864 10.1007/s00181-012-0633-x Physica-Verlag GmbH und Co. restricted |
| spellingShingle | Jaunky, Vishal Democracy and economic growth in Sub-Saharan Africa: A panel data approach |
| title | Democracy and economic growth in Sub-Saharan Africa: A panel data approach |
| title_full | Democracy and economic growth in Sub-Saharan Africa: A panel data approach |
| title_fullStr | Democracy and economic growth in Sub-Saharan Africa: A panel data approach |
| title_full_unstemmed | Democracy and economic growth in Sub-Saharan Africa: A panel data approach |
| title_short | Democracy and economic growth in Sub-Saharan Africa: A panel data approach |
| title_sort | democracy and economic growth in sub-saharan africa: a panel data approach |
| url | http://hdl.handle.net/20.500.11937/50864 |