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The Business Case for Democracy

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Title: The Business Case for Democracy
Authors: Knutsen, Carl Henrik
Issue Date: Oct-2020
Publication type: article, other
Organization: V-Dem Institute
Series/Report no.: Working Papers
Abstract: I present a business case for democracy, focusing on the impact of democracy on economic growth. This relationship is widely studied, and results are less clear for growth than many other development outcomes such as literacy or infant mortality. I discuss four factors pertaining to data quality and modelling choices, suggesting that several previous studies have underestimated the growth-benefits of democracy. I also discuss the relationship between democracy and economic crises and variation i... more
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