The article "Democracy Does Cause Growth" by Daron Acemoglu, Suresh Naidu, Pascual Restrepo, and James A. Robinson challenges the widely held view that democratic institutions hinder economic growth. Using a dynamic panel strategy, the authors control for country fixed effects and the rich dynamics of GDP to estimate the impact of democracy on GDP per capita. They introduce a new indicator of democracy that consolidates previous measures to reduce measurement error. The baseline results show that democratizations increase GDP per capita by about 20% in the long run. Similar effects are found using propensity score reweighting and instrumental-variables strategies. The effects are consistent across different specifications and robust to various robustness checks. The authors also investigate the channels through which democracy increases GDP, suggesting that it contributes by increasing investment, encouraging economic reforms, improving education and healthcare, and reducing social unrest. The study finds that democracy has a larger impact on growth in countries with higher levels of secondary education. Overall, the evidence strongly supports the conclusion that democracy does cause growth.The article "Democracy Does Cause Growth" by Daron Acemoglu, Suresh Naidu, Pascual Restrepo, and James A. Robinson challenges the widely held view that democratic institutions hinder economic growth. Using a dynamic panel strategy, the authors control for country fixed effects and the rich dynamics of GDP to estimate the impact of democracy on GDP per capita. They introduce a new indicator of democracy that consolidates previous measures to reduce measurement error. The baseline results show that democratizations increase GDP per capita by about 20% in the long run. Similar effects are found using propensity score reweighting and instrumental-variables strategies. The effects are consistent across different specifications and robust to various robustness checks. The authors also investigate the channels through which democracy increases GDP, suggesting that it contributes by increasing investment, encouraging economic reforms, improving education and healthcare, and reducing social unrest. The study finds that democracy has a larger impact on growth in countries with higher levels of secondary education. Overall, the evidence strongly supports the conclusion that democracy does cause growth.