Barro (1999) examines the determinants of democracy using a panel study of 100 countries from 1960 to 1995. The study finds that improvements in the standard of living, measured by per capita GDP, primary schooling, and reduced gender gaps in education, increase the likelihood of democracy. Conversely, urbanization and reliance on natural resources are negatively associated with democracy. Democracy is not strongly related to country size but is positively associated with the share of income held by the middle class. The influence of colonial heritage on democracy is weak when economic factors are controlled. Democracy has a complex relationship with religious affiliation, with Muslim and non-religious affiliations having negative effects.
The study also finds that while democratic institutions can promote economic growth by limiting government power, they may also hinder growth through increased income redistribution and interest group influence. Barro's previous work suggests a nonlinear relationship between democracy and growth, where growth initially increases with democratic rights but declines once a moderate level is reached.
The analysis focuses on how economic development influences democracy, supporting the Lipset hypothesis that prosperity promotes democracy. The study uses an electoral rights index compiled by Freedom House to measure democracy. The results show that economic development, education, and reduced gender gaps in education are key factors in promoting democracy. However, oil-rich countries and those with high urbanization rates are less likely to be democratic. The study also finds that larger countries are more likely to be democratic, though this may be due to endogeneity.
Additional factors influencing democracy include health indicators, upper-level schooling, income and education inequality, ethnolinguistic fractionalization, and the rule of law. The study finds that greater income inequality and ethnic diversity are associated with lower democracy. Religious affiliation also plays a role, with Muslim and non-religious countries showing lower levels of democracy. The analysis concludes that economic development, education, and reduced inequality are crucial for democratic development, though the relationship is complex and influenced by various factors.Barro (1999) examines the determinants of democracy using a panel study of 100 countries from 1960 to 1995. The study finds that improvements in the standard of living, measured by per capita GDP, primary schooling, and reduced gender gaps in education, increase the likelihood of democracy. Conversely, urbanization and reliance on natural resources are negatively associated with democracy. Democracy is not strongly related to country size but is positively associated with the share of income held by the middle class. The influence of colonial heritage on democracy is weak when economic factors are controlled. Democracy has a complex relationship with religious affiliation, with Muslim and non-religious affiliations having negative effects.
The study also finds that while democratic institutions can promote economic growth by limiting government power, they may also hinder growth through increased income redistribution and interest group influence. Barro's previous work suggests a nonlinear relationship between democracy and growth, where growth initially increases with democratic rights but declines once a moderate level is reached.
The analysis focuses on how economic development influences democracy, supporting the Lipset hypothesis that prosperity promotes democracy. The study uses an electoral rights index compiled by Freedom House to measure democracy. The results show that economic development, education, and reduced gender gaps in education are key factors in promoting democracy. However, oil-rich countries and those with high urbanization rates are less likely to be democratic. The study also finds that larger countries are more likely to be democratic, though this may be due to endogeneity.
Additional factors influencing democracy include health indicators, upper-level schooling, income and education inequality, ethnolinguistic fractionalization, and the rule of law. The study finds that greater income inequality and ethnic diversity are associated with lower democracy. Religious affiliation also plays a role, with Muslim and non-religious countries showing lower levels of democracy. The analysis concludes that economic development, education, and reduced inequality are crucial for democratic development, though the relationship is complex and influenced by various factors.